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sir, you never did lecture on cash budget.
This last June exams a full questions came out i could only give answers to the purpose of cash budget but the calculation was horrible on cash receipt and payable
Is there any future calculations on these?
I will add a lecture on cash budgets.
However you surely practiced the cash budget questions in your Revision Kit (and could have asked in this forum if anything in them was not clear)?
(I assume that you did buy a Revision Kit – we make it clear for all papers that it is essential to buy a Revision Kit and practice all of the questions in it.)
Given the following information below,
Cash at bank on 1st $ 30,000
2019Salaries and wages $ 20,000
estimatedInterest payable August $ 10,000
2018September 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.There is no point in simply typing out a full question and expecting to be provided with a full answer. That is not why this forum exists – it is here to explain things you are not clear about.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
In Bpp revision kit question no 10b.20 it says
The following data has been extracted from the payable’s records of X co.
Invoice paid in the month of purchase 25%
Invoice paid in the 1st month after purchase 70%
Invoice paid in the 2nd month after purchase 5%My question is if questions says payable records that means it is 100% credit payments , not like 25% is cash and rest 75% is credit?
Because answers has been solved as
25% x 250,000$
70% x 250,000$
5% x 250,000$
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