You have been provided with the following information: The sales budgeted were as follows; February 40,000 March
Question:
You have been provided with the following information:
The sales budgeted were as follows;
February | 40,000 |
March | 45,000 |
April | 37,500 |
May | 37,500 |
June | 40,000 |
Purchases were as follows;
March | 30,000 |
April | 27,500 |
May | 22,500 |
June | 27,500 |
1) Debtors settle accounts as follows: 60% within the month of sale, 25% the month following, 15% the month after
2) All purchases are on credit and are settled 90% in the month of purchase and the balance the following month
3) Wages are P 7,500 per month and are paid in the month they are incurred
4) Overheads P 10,000 per month including P 2,500 depreciation, which are settled monthly
5) Tax of P 4,000 has to be settled in May
6) The comp[any will receive settlement of an insurance claim of P 12,500 in June
7) The opening Cash balance on 1st April was expected to be P 15,000
Required
a) Prepare a cash budget for April to June
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith