The following information is provided for RoseGarden for the second quarter of 2023: April May June...

 

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The following information is provided for RoseGarden for the second quarter of 2023: April May June Budgeted Sales (S) Budgeted Purchases ($) Budgeted Cost of Sales ($) 40,000 35,000 45,000 160,000 140,000 180,000 40,000 60,000 50,000 (i) The opening cash balance on 1 June 2023 is expected to be $50,000. (ii) All sales are made on a cash basis. (iii) All purchases of inventory are made on credit and payments are made as follows: ▪ 50% in the month of purchase ▪ 50% in the month following the purchase. (iv) The following expenses are incurred every month and all cash expenses are paid in full at the end of each month: Depreciation ($3,500); Rent ($5,000); Wages ($6,000 plus 5% of total sales revenue for the month); Utilities ($2,000). (v) In June 2023, the owners of Rose Garden will be contributing equipment worth $10,000 and cash of $30,000 to the business. Required: Prepare a cash budget for the month of June 2023. Note: Ignore GST. The following information is provided for RoseGarden for the second quarter of 2023: April May June Budgeted Sales (S) Budgeted Purchases ($) Budgeted Cost of Sales ($) 40,000 35,000 45,000 160,000 140,000 180,000 40,000 60,000 50,000 (i) The opening cash balance on 1 June 2023 is expected to be $50,000. (ii) All sales are made on a cash basis. (iii) All purchases of inventory are made on credit and payments are made as follows: ▪ 50% in the month of purchase ▪ 50% in the month following the purchase. (iv) The following expenses are incurred every month and all cash expenses are paid in full at the end of each month: Depreciation ($3,500); Rent ($5,000); Wages ($6,000 plus 5% of total sales revenue for the month); Utilities ($2,000). (v) In June 2023, the owners of Rose Garden will be contributing equipment worth $10,000 and cash of $30,000 to the business. Required: Prepare a cash budget for the month of June 2023. Note: Ignore GST.

Answer rating: 100% (QA)

To prepare the cash budget for June 2023 we need to consider the cash inflows and outflows for the m... View the full answer