QUESTION 2

In the late June of each year, BOS Global Ltd prepares a cash budget for the next 6 months. The entitys management wishes to prepare a cash budget in order to assess its likely requirements for short-term funds.

Actual sales for May, and estimated sales for June, and for the next 7 months are as follows:

Months	Sales Revenues (Actual and Estimates) [GHS]		Months	Sales Revenues (Actual and Estimates) [GHS]
May	20,000		September	50,000
June	28,000		October	94,000
July	24,000		November	74,000
August	26,000		December	52,000
			January	40,000

Approximately 25 per cent of sales are for cash and 75 per cent are on credit. Past experience has shown that two-third of all credit sales are collected in the month immediately following the month of sale, and the remaining one-third is collected in the second month following the sales. No discount is given.

BOS Global Ltd follows a policy of basing its purchase on estimated sales. Purchases are 70 per cent of the following months estimated sales. The policy of the company is to ensure that the goods needed in each month are acquired and paid for in that same month. Other cash outflows in connection with monthly salaries are expected to be:

Months	Monthly Salaries (Estimates) [GHS]		Months	Monthly Salaries (Estimates) [GHS]
July	7,400		October	11,000
August	7,450		November	7,800
September	9,100		December	7,150

At the beginning of July, the company is expected to have GHS 8,400 credit balance in its bank account.

Required:

Prepare a monthly cash budget for BOS Global Ltd for the six (6) months period, ending December.