You are to prepare the cash budget for Alfardan Company for the three months of April, May and June 2020. 55% of the Company's total sales are cash sales, 45% are credit sales. Collection of the credit sales is as follows: 15% of the Company's credit sales are collected in the month of the sale 50% of the Company's credit sales are collected one month after the date of sale. 35% of the Company's credit sales are collected two months after the date of sale. Actual sales are as follows: February March AED 20,000 AED 15,000 Forecasted sales are as follows: April May June AED 16,000 AED 20,000 AED 30,000 Required: Complete the Schedule of Cash Collections for the months of April, May and June 2020. Total Sales Credit Sales Collection of Credit Sales: Collected in month of sale Feb $20,000 $9,000 $9,000 $1,350,0 Mar $15,000 $6,750 S6,750 $1,012. Apr $16,000 57 200 $7.200 51,080. May $20,000 $9,000 $9.000 $1,350.0 Jun $30,000 $13,500 $13,500 $2,025.0 50 00 Collected in One Month after sale $4,500. $3,375 $3,600.0 $3,150 $2,362.5 0 57,605 57,313 $4,500.0 $2,520.0 Collected Two Months after sale 00 0 $5,513 59,045 Total Cash Collections of Credit Sales Cash Sales $1,350 $10,000 0 Total Cash Receipts 7500 $13,013 8000 $15.605 10000 517313 $11,350 15000 $24.045 PART B Actual sales are as follows: February AED 20,000 March AED 15,000. Forecasted sales are as follows: April AED 16,000 May AED 20,000 June AED 30,000 Purchase of inventory is 50% of sales 25% of the Company's purchases are paid in cash in the same month 30% of the Company's purchases are paid in the month after purchase 45% of the Company's purchases are paid two months after purchase Rent of AED 1500 will be paid each month Wages and Salaries of AED 2000 will be paid each month. New equipment will be purchased as follows: - Equipment costing AED 6000 will be purchased and paid for in April 2020 - Equipment costing AED 3000 will be purchased and paid for in May 2020 Insurance of AED 2000 will be paid in June 2020 Schedule of Expected Cash Disbursements Feb Mar Apr May Jun Total Sales Total Purchases Payment for Purchases: Cash Purchases Paid the Following Month Paid the Second Month Rent Payments Wages and Sales Equipment Insurance Total Cash Disbursements The Company would like to maintain a minimum cash balance of AED 23,000. Any outstanding amount will be repaid at the end of the month when the company has enough cash to do so. Interest on borrowing is charged at 12% a year The cash balance at the end of March 2020 was AED 22,000. Required: Prepare a Cash Budget for the Company using the details which are in parts A and B. (25 marks) Cash Budget 1 April May June Cash Balance, Beginning Cash Receipts Total Cash Available | Less: Cash Disbursements Excess (Deficiency) Financing Borrowing Repayment Interest Total Financing Cash Balance, Ending