Question 16) Cash budget Timone Limited, a beer wholesaling company has the following budgeted information: Month Purchases Operating costs May June July August September Sales values (before trade discount) GHE 960.000 1,020,000 810.000 1,200,000 1,410,000 GHE 800.000 600.000 900,000 1.100.000 700.000 GHC 115,000 110,000 120.000 130.000 125,000 Additional information: (a) 20% of sales are cash terms and cash customers enjoy a 5% trade discount based on the selling price. The remaining sales are on credit terms, 70% of which are collected in the month following sale and 30% of which are collected in the second month following sale. (6) Timone Limited sets its selling price on a uniform mark up of 50% of the cost of goods sold for both cash and credit sales. c) (d) All purchases are bought on credit and paid in the following month after purchase. Timone Limited will buy a new meat cutting machine at a cash price of GH300,000 on 1 August. The old meat cutting machine, with a cost and carrying amount of GH210,000 and GH156,000 as at 1 August, will be traded in against the new machine at a trade-in allowance of GH120,000. At all times, Timone Limited has only one meat cutting machine in operation and it is the only non-current asset of the company. The operating costs include the monthly depreciation expense of the meat cutting machine. All monthly operating costs, other than the depreciation expense, are paid in the month when they are incurred. Both the old and new meat cutting machines are depreciated at 20% per annum on a straight-line basis. The expected cash balance as at 30 June is GH308,000. Required: (a) Prepare a monthly cash budget for July, August and September together with a total column for the quarter