Question 4 (20Marks) The directors of Kingston & Co. were concerned about the the company's cash flow. They requested their accountant to prepare a cash budget for the four months ending 30 April 2016. (i) The following sales figures are for the months of November 2015 to June 2016. The figures from January 2016 onward are estimated: Actual sales November 2015 60000 December 2015 64000 Forcast sales: January 2016 65000 Feb. 2016 70000 March 2016 72500 April 2016 76250 May 2016 80000 3 June 2016 78750 4. Half the sales are normally paid for in the month in which they occur and the customers are rewarded with a 5% cash discount. The remaining sales are paid for net in the month following the sale. $. (ii) Goods are sold at a mark-up of 25% on the goods purchased one month before sale. Half of the purchases are paid for in the month of purchase and a 4% prompt settlement discount is received. The remainder is paid in full in the following month. 6 (iii) Wages of $12000 per month are paid in the month in which they are earned. It is expected that the wages will be increased by 10% from 1 March 2016. 7. (iv) Rent will cost $60000 per annum payable three monthly in advance in January, April, July and December each year. 8. (v) The directors have arranged a bank loan of S60000 which would be credited to company's current account in February 2016. (vi) The half-yearly interest on 200000, 8% debentures of S1 cach is due to be paid on 15 January 2016. 10. (vii) The ordinary dividend of $12000 for the year 2015 will be paid in March 2016. 11. (viii) The bank balance at 31 December 2015 is $12000. 12. Required: 13. Prepare a cash budget for the four months ended 30 April 2016. Give your answers to the nearest dollar (S)