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The following forecast are available from the present budgets being prepared by XWY Ltd. Purchases Sales Salaries Overhead May $000 500 800 150 100

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The following forecast are available from the present budgets being prepared by XWY Ltd. Purchases Sales Salaries Overhead May $000 500 800 150 100 June $000 600 900 180 150 July $000 400 800 180 170 August $000 500 700 220 170 Other information are as follows: 1. All sales are made on credit basis to customers who pay in the month following sale with a 5% cash discount. 2. All goods are bought on credit from suppliers who allow for payment in the month following purchase with 10% cash discount. 3. Salaries and wages are paid in the month in which they are earned. 4. Overhead expenses include depreciation amounting to 50,000 each month payments are made in the month following the month in which expenses are incurred 5. A dividend amounting to $20,000 will be paid in August. 6. A delivery van is to be sold for $15,000 cash in June. 7. The balance at the bank on 1 June is expected to be $250,000. Required: Construct a monthly cash budget in columnar form for the three months ending 31st August showing the bank balance at each month end

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