Question 7

Budgeting: OPQ Ltd. has prepared the following budget for the next quarter:

Month	Sales ($)	Purchases ($)	Operating Expenses ($)
January	60,000	30,000	15,000
February	70,000	35,000	20,000
March	80,000	40,000	25,000

Requirements:

1. Calculate the total budgeted sales for the quarter.
2. Compute the total budgeted purchases for the quarter.
3. Determine the total budgeted operating expenses for the quarter.
4. Assess the cash budget if the company expects to collect 80% of sales in the month of sale and the remaining 20% in the following month.