You are the manager of Fantastic Fencing who are in the business of selling fencing and landscaping to high end customers. At 1 April 2021, the business had a bank balance of $75,000. Provided below are estimates for receipts and payments for the three months ending 30 June 2021.

Credit Sales are received as follows:

50% in month of sale

30% in month following sale

20% in second month following sale

Required (approximately 250 words)

a) You are to prepare a monthly Cash Budget for the three months ending 30 June 2021 to calculate an expected cash at bank figure which your accountant will review. Please ensure you include an overall total column and show all your workings as marks are allocated between workings and the final answer. Note: It is recommended you compile your cash budget in excel and copy it into your word report.

Fantastic Fencing May April $ June $ $ 620,000 640,000 680,000 205,000 Receipts Sales Proceeds from the sale of old non-curent assets Payments Salaries and wages Supplies New equipment Purchase of plants 225,000 155,000 165,000 115,000 250,000 175,000 235,000 165,000 130,000 120,000