From the information below, get a cash budget for ABC Company for April, May, and June 2024 in a columnar form.

Month	Sales	Purchases	Wages	Exp.
Jan. (actual)	80,000	45,000	20,000	5,000
Feb. (actual)	80,000	40,000	18,000	6,000
Mar. (actual)	75,000	42,000	22,000	6,000
Apr. Budget	90,000	50,000	24,000	6,000
May Budget	85,000	45,000	20,000	6,000
Jun. Budget	80,000	35,000	18,000	5,000

You are further informed that:

• 10% of purchases and 20% of sales are for cash.
• The average collection period of the company is half a month and credit purchases are paid off regularly after one month.
• Wages are paid half monthly and the rent of $500, excluded in expense, is paid monthly.
• Cash and bank balance on April 1 was $15,000, and the company aims to keep it below this figure at the end of every month. The excess cash is placed in fixed deposits.

Answer rating: 100% (QA)

To create a cash budget for ABC Company for April May and June 2024 we need to consider the given in... View the full answer