Assume that you are the accounts executive for La Casa Pte Ltd (‘La Casa’), an online retailer which sells gym bags bought from an overseas supplier.

The following information is available for La Casa:Forecast Sales Volume is shown as below:

Forecasted sales	No. of gym bags (in units)
May 2023	5,160
Jun 2023	4,850
July 2023	5,230

The cost price and selling price per gym bag are $125 and $200 respectively. 80% of each month’s sales are estimated to be cash sales collected within the same month. The remainder will be credit sales and will be received in the following month.40% of the expenses relating to the purchase of gym bags will be paid within the same month. The remainder will be credit purchases and will be paid in the following month. Selling and Administrative Expenses are expected to remain constant at $2,000 per month, and will be paid within the same month. Beginning Cash for June 2023 is expected to be $10,000.

Required:

Prepare the following budgets for La Casa Pte Ltd for June 2023 based on the information above. You can use the templates below to answer this question.

Cash Receipt Budget;

Cash Disbursement Budget; and

Cash Budget

La Casa Pte Ltd
Cash Receipt Budget
	June 2023
Cash Sales in the current month
Add Collection of Credit Sales
Total Cash Collection
Cash Disbursement Budget
		June 2023
Payment of current month’s purchases
Add Payment of Credit Purchases
Add Payment of Selling & Administrative Expense
Total Cash Disbursement

Cash Budget

	June 2023
Beginning cash balance
Add: Budgeted cash collection
Less: Budgeted cash disbursement
Ending cash balance

Answer rating: 100% (QA)

To prepare the budgets for La Casa Pte Ltd for June 2023 we will need to calculate the cash receipts ... View the full answer