you are the principal accountant of sam sam limited.use the information below to prepare a cash budget for the month of january to march 2013.

sales purchases wages variable overheads

$ $ $ $

November 2012 20,000 20,000 20,000 20,000

December 2012 30,000 25,000 20,000 10,000

January 2013 40,000 30,000 30,000 5,000

February 2013 60,000 45,000 20,000 8,000

March 2013 60,000 50,000 20,000 6,000

1. the cash balance on 1st January 2013 is $ 25,000

2.fixed overheads are $2,000 per month payable in the same month.The $ 2,000 includes $ 100(non cash) depreciation.

3)Receipt for sales follow this pattern

a)50% during the month of sale

b)25% during the following month

c)25% during the next following month

4.It is the policy of the firm to pay trade conditions as follows

a)20% during the month of sale

b)40% during the following month

c)40% during the next following month

5)wages are paid 50%in the month earned and 50%in the following month

6)fixed assets of $ 30,000 are paid for on 1st march