Based on the following assumptions and policies ;

a) Prepare the budget for Collectables from Sales!

b) Prepare the budget for Purchases!

c) Prepare the budget of Cash Payment for Purchases!

d) Set the company’s Cash Budget for 2021

BOARD Policies & Assumptions

- Company’s projected sales for the three months as followings:

Sales Forecast for 2021
January 2021	200.000 USD
February 2021	220.000 USD
March 2021	240.000 USD

- All Sales are credited: %40 of sales are collected as in form of cash. %30 of sales are credited for 1 month and %30 of it for the next month. Rule: 40;30;30

- Accounts Receivables by quarter ending 31/12/2020 amounted to 120.000 USD

1. a) 30.000 USD of Account Receivables belong to November Sales ( 11/2020)
2. b) 90.000 USD of Account Receivables belong to December Sales ( 12/2020)

- All purchases are credited: %50 of purchases are paid in advance and %50 of purchases are debited

- Projected Inventories by the end of months are as followings:

Projected Inventories by the end of Month
December 2020	72.500 USD
January 2021	75.000 USD
February 2021	77.500 USD
March 2021	90.000 USD

- by the last quarter ( 31/12/2020), Company’s Accounts payable amounted to 50.000 USD

- Cash Balance amounted to 60.000 USD

-Monthly Fixed Operating Expenses are equal to the %20 of monthly sales.

- Required Cash Balance for each month is set as 25.000 USD

• Company will issue new stocks amounted to 10.000 USD in January, 20.000 USD in February and new bonds amounted to 30.000 in March

- Company will purchase a machine in January for 50.000 USD for equal 5 installments

- Net Profit is equal to the %25 of Sales

Answer rating: 100% (QA)

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