Sales Cash Sales (30%) Lag 1 month (40%) Lag 2 months (30%) Other Income Total Cash...

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Sales Cash Sales (30%) Lag 1 month (40%) Lag 2 months (30%) Other Income Total Cash Receipts Disbursements Purchases Rent Wages & Salaries Dividends Capital Expenditure Taxation Total Cash Disbursements Total Cash Receipts . Total Cash Disbursements Net Cash Flow Add: Beginning Cash Ending Cash Minimum Balance Required Funding (Notes Payable) Excess Cash (Marketable Securities) Question No:2 The below provided details are for the ABC Company Actual Sales - Month 01 $30,000 Actual Sales-Month 02 $40,000 Forecasted Sales-Month 03 $50,000 Forecasted Sales-Month 04 $65,000 Forecasted Sales-Month 5 $75,000 The Opening Cash Balance is $5,000 and the company wishes to maintain this balance. The ABC Company's policy and past pattern indicate the following for every month Cash sales in the month of sale 30% Collected in the 1st month after sale 40% Collected in the 2nd month after sale 30% Other income is $1,00 per month received in cash. ABC companies puthases are made all paid fully in the month of sale and are $30,000 for Month 03, $50,000 for Month 04 and $60,000 for Month 05. Rent amounts to $2,000 per month. Wages are 10% of the current month's sales. A dividend of $4,000 will be paid in Month 04. A capital expenditure on Machinery is budgeted for Month 05, amounting to $10,000. Taxes are $1,000 and are due to be paid in Month 05. a. Prepare the cash budget for Month 03, 04 & 05 using the template provided below. (20 marks) b. Recommend 5 strategies the company could adopt to improve the cash position that you have calculated (5 marks) Sales Cash Sales (30%) Lag 1 month (40%) Lag 2 months (30%) Other Income Total Cash Receipts Disbursements Purchases Rent Wages & Salaries Dividends Capital Expenditure Taxation Total Cash Disbursements Total Cash Receipts . Total Cash Disbursements Net Cash Flow Add: Beginning Cash Ending Cash Minimum Balance Required Funding (Notes Payable) Excess Cash (Marketable Securities) Question No:2 The below provided details are for the ABC Company Actual Sales - Month 01 $30,000 Actual Sales-Month 02 $40,000 Forecasted Sales-Month 03 $50,000 Forecasted Sales-Month 04 $65,000 Forecasted Sales-Month 5 $75,000 The Opening Cash Balance is $5,000 and the company wishes to maintain this balance. The ABC Company's policy and past pattern indicate the following for every month Cash sales in the month of sale 30% Collected in the 1st month after sale 40% Collected in the 2nd month after sale 30% Other income is $1,00 per month received in cash. ABC companies puthases are made all paid fully in the month of sale and are $30,000 for Month 03, $50,000 for Month 04 and $60,000 for Month 05. Rent amounts to $2,000 per month. Wages are 10% of the current month's sales. A dividend of $4,000 will be paid in Month 04. A capital expenditure on Machinery is budgeted for Month 05, amounting to $10,000. Taxes are $1,000 and are due to be paid in Month 05. a. Prepare the cash budget for Month 03, 04 & 05 using the template provided below. (20 marks) b. Recommend 5 strategies the company could adopt to improve the cash position that you have calculated (5 marks)