The Teashop

Scenario

The Teashop are new to budgeting and wish to understand how to plan and

understand potential cash flow for Q$12024$ and to prepare a simple cash budget.

You have been provided with the following extracted information:

Nov Dec Jan Feb March

$$

Sales $8,00012,00010,00012,00018,000$

Purchases $5,00011,00010,00015,0008,000$

Other expenses $3,0008,0009,0002,0005,000$

Opening cash $700$

Additional information:

Sales are received $2$ months after the invoice is issued

Purchases are paid one month after the date of

purchase

Other expenses are paid within the month they are incurred

Required:

Prepare the cash budget for Q$12024$ covering January, February and

March