The following information for ABF Projects is available: Cash revenue Credit revenue Total purchases Salaries and...

 

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The following information for ABF Projects is available: Cash revenue Credit revenue Total purchases Salaries and wages Other expenses MARC APRIL H 180 000 380 000 320 000 63 000 12 000 200 000 410 000 340 000 63 000 12 500 MAY • 25% within 60 days • 15% within 30 days 250 000 500 000 385 000 63 000 12 500 Additional information: (1) Credit revenues are collected as follows: • 50% within 30 days (the next month) JUNE 290 000 560 000 432 000 63 000 14 500 • 10% uncollectible (bad debt) (2) The following discount is given on revenues: • 10% on all cash revenue • 5% on credit revenue paid within 30 days (3) Salaries, wages and other expenses are paid in cash. (4) Other expenses include depreciation of R4 000 per month. JULY 320 000 560 000 445 000 63 000 54 800 AUGUS T 350 000 600 000 460 000 63 000 59 000 (5) 55% of all purchases are on credit and are paid for in the following month. The rest represents cash purchases. (6) The bank balance of ABF Projects on 1 June is R200 000. (7) A dividend of R3 000 will be declared on 31 August. Required: Prepare the cash budget for the months June, July and August (Use separate columns for June, July and August). The following information for ABF Projects is available: Cash revenue Credit revenue Total purchases Salaries and wages Other expenses MARC APRIL H 180 000 380 000 320 000 63 000 12 000 200 000 410 000 340 000 63 000 12 500 MAY • 25% within 60 days • 15% within 30 days 250 000 500 000 385 000 63 000 12 500 Additional information: (1) Credit revenues are collected as follows: • 50% within 30 days (the next month) JUNE 290 000 560 000 432 000 63 000 14 500 • 10% uncollectible (bad debt) (2) The following discount is given on revenues: • 10% on all cash revenue • 5% on credit revenue paid within 30 days (3) Salaries, wages and other expenses are paid in cash. (4) Other expenses include depreciation of R4 000 per month. JULY 320 000 560 000 445 000 63 000 54 800 AUGUS T 350 000 600 000 460 000 63 000 59 000 (5) 55% of all purchases are on credit and are paid for in the following month. The rest represents cash purchases. (6) The bank balance of ABF Projects on 1 June is R200 000. (7) A dividend of R3 000 will be declared on 31 August. Required: Prepare the cash budget for the months June, July and August (Use separate columns for June, July and August).

Answer rating: 100% (QA)

To prepare the cash budget for the months of June July and August we need to consider the cash inflows and outflows for each month Based on the provid... View the full answer