[MASH256]

Given the following information below,
Cash at bank on 1st $ 30,000
2019

Salaries and wages $ 20,000
estimated

Interest payable August $ 10,000
2018

September October November December

$ $ $ $

Estimated Cash Sales – 880,000 662,000 242,000

Credit sales 100,000 80,000 140,000 120,000

Purchases 160,000 170,000 240,000 180,000

Other expenses – 20,000 22,000 21,000

Additional information

Credit sales are collected 50% in the month of sales made 50% in the month following collection .From credit sales are to 5% discount if, payment is received in the month of sales and 2.5% if, payment is received in the following month. Creditors paid either on a prompt, or, 30 day’s credit basis. It is estimated that, 10% of the creditors are in the proper prompt category.
Required:
Prepare a cash budget for the quarter ended 31st December, 2017 based on the Information above.

[Author]

Posts