Forecasted cash receipts and expenditure for Elvira Trading for the period August to October are as follows: Cash Receipts Expenditure $ $ July 60,000 August 54000 58,000 September 68,000 30,000 October 90,000 44,000 Additional information provided:  Expenditure for the period July to October includes monthly depreciation of $5,000.  Payment for the cash related expenditure would be 40% in the month of purchase, the balance being paid the following month.  The company intends to sell equipment valued at $25,000 in September.  Insurance of $25,000 is payable in December.  Opening cash balance as at August 1, $18,800. 

Required: Prepare a monthly Cash Budget for Elvira Trading for the period August to October 2015

Answer rating: 100% (QA)

To prepare the monthly cash budget for Elvira Trading for the period August to October we need to ca... View the full answer