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The opening cash balance of Greenhill Support Fund on Ist January, 2022 is expected to be GH 30,000. The budgeted sales are as follows: GH

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The opening cash balance of Greenhill Support Fund on Ist January, 2022 is expected to be GH 30,000. The budgeted sales are as follows: GH November 2021 80,000 December 2021 90,000 January 2022 75,000 February 2022 75,000 March 2022 80,000 The analysis of records shows that debtors settle according to the following pattern: 60% within the month of sales, 25% the month following, 15% the next one The extracts from the purchases budget were as follows: GH December 60,000 January 55,000 February 45,000 March 55,000 All purchases are on credit and the past experience shows that 90% are settled in the month of purchase and the balance settled the month after. Wages are GH15,000 per month and overheads of GH20,000 per month (including GH5,000 depreciation) are settled monthly. Taxation of GH8,000 has to be settled in February and the company will receive settlement of an insurance claim of GH25,000 in March. Required: Prepare a cash budget for January, February and March, 2022. 10mks

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