Question

Financial information pertaining to John Ptd Ltd above follows:

• Beginning cash balance is SGD1,800,000
• Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarters sales were SGD8,400,000. There are no bad debts.
• Purchases of direct materials and labor costs are paid for in the quarter acquired.
• Manufacturing overhead expenses are paid in the quarter incurred.
• Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are budgeted at SGD340,000 per quarter, including SGD90,000 of depreciation.

Required:

Refer to the sales budget prepared in Task 1. Construct a cash budget for John Ptd Ltd for the quarter ending 30^th September 2021.