Question 4: (6 marks):

Let the sales and purchases of a company be as follows:

The month	September	October	November	December
Sales Value (SAR)	40000	48000	60000	80000
Purchase value (SAR)	33600	42000	56000	25200

Here is the following information:

1- Sales: 75% in cash and 25% on credit to be collected in the month following the month of sale.

2- The cash balance on September 30 is 12000 riyals.

3- Expenses were estimated as follows: salaries and wages 15% of the months sales, rent 5% of the months sales, and all other expenses except depreciation were estimated at 4% of the months sales, and that all these expenses were paid in the same month.

4- The company pays its purchases during the month of purchase and gets a cash discount of 2%.

5- The company pays a fixed asset purchase installment as follows: 600 riyals in October and 400 riyals in December.

6- The company wants to maintain a cash balance of 8,000 riyals as a minimum, and in the event that this balance cannot be provided, it resorts to the bank and borrows from it at an interest rate of 18% annually.

Required: Preparation for October, November, and December: schedule of receipts, schedule of payments, and estimated cash budget (treasury).