Question 4
Prepare a cash budget for april & may including support schedule for cash collection & cash payment
the owner of August Indah sdn bhd ask OSTI company has requested for a cash budget for may & june after examining he record of the company , define the following
1) cash balance on 1st april	$ 5,000.00
2) Total sale for april	$ 50,000.00
3) total sale for may	$ 50,000.00
50% of the sale are expected to be in cash, while the other 40% is on credit. The credit sale will be collected 1month after sale. Purchase of material will be made on credit. 50% of the credit purchases will be paid in the month of purchse and the other 50% after one month of purchases. Estimated purchases on march will be $25,000, april $23,000, may $28,000. Salary and wages is $12,000 per month. Rent $4000 per month the company receive 5% dividen from until trust investement $500,000 in april. a motor van costing $50,000 will be purchased in april. Payment of the motor van will be in pro equal payment starting may 2019. No minimum cash balance is required. The owner of the company does not have access to short term loan