prepare operational budgets

Q6: Background information for Messara. Q6: Prepare a cash budget for Messara for January, February and March. All amounts below include GST where applicable. Expected receipts are: Cash Sales Collections from Accounts Receivable January 5,800 9,500 February 6,600 8,200 March 7,900 6,800 Budgeted purchases and wages are: Purchases Wages December 11,000 January 13,200 2,900 February 15,400 2,700 March 17,600 2,500 50% of purchases are paid in the month they are incurred. The rest are paid the following month. Wages are paid in the month they are incurred. The bank account balance at 31 December is $9,200. Receipts Budget March Cash sales January February 5800 6600 9500 8200 15300 14800 Collections from Debtors 7900 6800 114700 Total receipts December Payments Budget January February March Purchases Payments Same month One month Wages 2900 2700 2500 Total payments Cash Budget January February March Opening cash balance Add: Receipts Cash available Less: Payments Ending cash balance