Q1. "The following information relates to the business." of SweetIdea.

 

Actual Credit Sales amount to:

 

March	April	May
$7,000	$5,000	$4,000

Customers normally pay their debts at a fixed rate.

• 60% in first month after sale 40% in second month after sales

Estimated Credit Sales:

June	July	August
$3,000	$6,000	$8,000

Required:

Please prepare a budget for Accounts Receivable collections for the months of June, July, and August (excluding GST). Thank you.

"Sweet Idea Accounts Receivable Collections Budget"
	April	May	June	July	August
CreditSales
Collections:
One Month aftersale
TwoMonths aftersale
TotalReceipts

Q2.

Please find below the information provided by BetterLand. I kindly request you to prepare a cash payments budget for the quarter ended December 31, without considering the concept of GST. As per the details provided, the expected inventory purchases for the budget period are:

October	November	December
$6,500	12,000	15,000

Cash expenses to be incurred during the period:
- Rent: $6,600 per month
- Wages: $8,500 in October and November and $14,000 in December
- Marketing expenses: $2,200 in October, increasing to $3,600 in November and December
- Administration and general expenses: $5,200 per month
- Financial expenses: $420 per month.

Inventory purchases are paid for in the month following the purchase. The balance of Accounts Payable on September 30 which solely relates to inventory purchases is $4,840.

	October	November	December
Purchases
Rent
Wages
MarketingExpenses
Admin&GeneralExpenses
FinancialExpenses
Totalpayments