Consider the budgeted income statement for Good Produce Sdn. Bhd. for the month ended 30 June 2019 below:-               $       $ Sales           290,000 Less:   Cost of Goods Sold   Inventory, 31 May 2019      50,000   Purchases      192,000   Available for sale     242,000   Inventory, 30 June 2019      40,000            202,000 Gross profit           88,000 Less:   Operating expenses   Wages         36,000   Utilities          5,000   Advertising         10,000   Depreciation          1,000   Office expenses         4,000   Insurance and property taxes        3,000   59,000 Operating profit          29,000              =====

Additional information:  • The cash balance on 31 May 2019 $15,000.  

• Sales proceeds are collected as follows: 80% the month of sale; 10% the second month; and 10% the third month.

• Accounts receivable are $44,000 on 31 May 2019 consisting of $20,000 from April 2019 sales and $24,000 from May 2019 sales.

• Accounts payable on 31 May 2019 are $145,000.

• Good Produce Sdn. Bhd. pays 25% of purchases during the month of purchase and the remainder during the following month.

• All operating expenses requiring cash are paid during the month of recognition, except that insurance and property taxes are paid annually in December for the forthcoming year.


BMAC5203/SIMAD/JAN2020
4

Required: Prepare a cash budget for June 2019. Confine your analysis to the given data. Ignore income  taxes. (