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Rover Ltd is a NEW business and is expecting the following sales figures in the coming months. Units September October November December January Sales
Rover Ltd is a NEW business and is expecting the following sales figures in the coming months. Units September October November December January Sales 2000 2200 2300 2500 2500 The policy is to hold finished goods inventory equivalent to 30% of the next month's sales. Rover Ltd sells each unit for 30 each and customers are given 2 months credit. There are no cash sales. Raw materials purchase are paid immediately in full in cash. Wages are paid in the month incurred and for the next three months beginning September will be 15,960, 13,380 and 14,160. Electricity of 1,500 per month is paid quarterly in arrears. Rent is paid 3,000 per month is paid quarterly in advance. Rover will buy a van for 15,000 in September. Compile the Cash Budget for Rover Ltd for EACH of the three months, September to November.
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