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The table below gives the cash flows of a restaurant, Billys Kitchen, over three months April, May, and June 2016. Use the information provided in

The table below gives the cash flows of a restaurant, Billys Kitchen, over three months April, May, and June 2016. Use the information provided in the table and in the notes below it to create a cash budget for three months ending 30 June 2016.

Month

Food sales

Beverage sales

Food purchases

Beverage purchases

Labour costs

Overheads

April

15,000

5,500

6,400

2,200

6,900

5,100

May

18,800

7,300

7,200

3,800

6,900

5,300

June

22,500

8,600

8,300

4,400

7,500

5,600

Notes:

1) Assume that all sales and purchases are made with cash.

2) The company will receive its annual investment interest of R3,000 in April.

3) New kitchen equipment of R7,300 will be purchased in April and paid for in cash in May.

4) The cash balance on the 1st of April was R1,200.

Use the cash budget drawn up below. For the Net cash flow and Closing balance, where necessary, write the calculation used to get the answer in the relevant cell:

Billys Kitchen

Cash budget

For three months ending 30 June 2016

April

May

June

Beginning cash balance

Cash receipts:

Food sales

Beverage sales

Other receipts

Total receipts

Food purchases

Beverage purchases

Labour costs

Overheads

Other payments

Total disbursements

Net cash flow

Closing cash balance

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