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The foll owing information relates to Abrantie Ltd: Wages Incurred Inventory Purchases Overhead Sales Month GH'000 GH'000 GH'000 GH'000 February 5 25 10 30 March

The following information relates to Abrantie Ltd:

Wages Incurred

Inventory Purchases

Overhead

Sales

Month

GH'000

GH'000

GH'000

GH'000

February

5

25

10

30

March

6

35

12

40

April

12

15

16

60

May

10

22

14

50

June

12

28

18

70

July

10

12

16

60

August

15

14

14

50

a. It is expected that the cash balance on 30th April will be an overdraft of GH 22,000.
b. The wages are assumed to be paid a month after they are incurred.
c. It is companys policy to pay suppliers for inventory a monthafter receipt.
d. Included in the overhead figure is GH 3,000 per month which represents depreciation on two cars. There is no delay in paying the overhead expenses.
e. Ten per cent(15%) of the monthly sales are for cash and 45 %to be collected the following month and the rest in twomonths time
f. It is intended to repay a loan of GH 60,000 on 30 May.
g. Disposal is expected in June of an old vehicle at a price ofGH80,000 of which GH 30,000 will be received on disposal and the remaining amount (GH 50,000) received on two installments of equal amounts the following two months.

You are required to prepare a month to month cash budget for four months ending 31st August.

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