The following budgeted information relates to the business of Pierre:

It is expected that:

■ The cash balance at 1 June will be £350 overdrawn
■ 5% of sales will be for cash
■ 10% of purchases will be cash purchases
■ Debtors will pay one month after sale
■ Creditors will be paid two months after purchase
■ Wages and other expenses are paid as incurred.

Required

Prepare a cash budget for each of the three months ending 30 September.

Transcribed Image Text:

Sales Purchases Wages Other expenses Cash purchase of shop fittings Depreciation of shop fittings May June £ £ 64,000 62,000 30,000 32,000 12,500 12,500 8,500 8,700 150 150 July August September £ 64,000 39,000 12,500 8,500 150 £ £ 60,000 65,000 38,000 42,000 12,500 13,000 8,300 8,500 14,000 150 150