Rover Ltd is a NEW business and is expecting the following sales figures in the coming...

  

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Rover Ltd is a NEW business and is expecting the following sales figures in the coming months. Units September October November December January Sales 2000 2200 2300 2500 2500 The policy is to hold finished goods inventory equivalent to 30% of the next month's sales. Rover Ltd sells each unit for £30 each and customers are given 2 months credit. There are no cash sales. Raw materials purchase are paid immediately in full in cash. Wages are paid in the month incurred and for the next three months beginning September will be £15,960, £13,380 and £14,160. Electricity of £1,500 per month is paid quarterly in arrears. Rent is paid £3,000 per month is paid quarterly in advance. Rover will buy a van for £15,000 in September. Compile the Cash Budget for Rover Ltd for EACH of the three months, September to November. Rover Ltd is a NEW business and is expecting the following sales figures in the coming months. Units September October November December January Sales 2000 2200 2300 2500 2500 The policy is to hold finished goods inventory equivalent to 30% of the next month's sales. Rover Ltd sells each unit for £30 each and customers are given 2 months credit. There are no cash sales. Raw materials purchase are paid immediately in full in cash. Wages are paid in the month incurred and for the next three months beginning September will be £15,960, £13,380 and £14,160. Electricity of £1,500 per month is paid quarterly in arrears. Rent is paid £3,000 per month is paid quarterly in advance. Rover will buy a van for £15,000 in September. Compile the Cash Budget for Rover Ltd for EACH of the three months, September to November.

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Answer Asper given information cash budget will be prepared Because in ... View the full answer