Quality foods ltd. wants to arrange an overdraft facility from month August to October 2018. During this time period, them will manufacture most of its products for stock.

Required:

a cash budget for the period of August to October based on the data given below:

Month	Sales $	Purchases $	Wages $	Manufacturing expenses $	Office expenses $	Selling expenses $
June	90,000	62,400	6,000	1,500	1,000	1,000
July	96,000	72,000	7,000	2,000	500	2,000
August	54,000	121,500	5,500	1,500	750	1,000
September	87,000	123,000	6,000	2,250	1000	2,500
October	63,000	134,000	7,500	2,500	1250	2,000
November	70,000	140,000	8,500	2,750	1500	2,250
December	80,000	150,000	9,000	3,000	1500	2,500

Additional Information:

1. Cash on hand 1082018 $12,500.
2. 50% of credit sales are released in the month following the sale and the remaining 50% in the second month following. Creditors are paid in the month following the month of purchase.
3. Lag in payment of manufacturing expenses half a month.
4. Lag in payment of other expenses one month.

Need answer below:

Cash budget for 3 months from August to October 2018
Particulars	August ($)	September ($)	October ($)
Receipts:
Opening balance
Sales
Total Receipts
Payments:
Purchases
Wages
Manufacturing expenses
Office expenses
Selling expenses
Total payments
Closing Balance

Answer rating: 100% (QA)

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