Reference no: EM132469404

Question 1: Prepare Cash budget for the Quarter April To June based on the following data and additional information.

Month             Sales($)                 Purchase($)                Wages($)             Overheads($)

Jan                  60,000                  36,000                  9,000                    10,000

Feb                 62,000                   38,000                  8,000                    9,500

Mar                64,000                     33,000                  10,000                11,500

Apr                  58,000                      35,000                8,500                  9,000

May                 56,000                     39,000               9,000                     9,500

Jun                60,000                    34,000                  8,000                        9,000

Additional Information :

Point 1: Cash balance at 1st April is $800,000

Point 2: Sales is 40% cash sales and 60% is collected in the following month.

Point 3: All purchases of a month are paid after 2 months.

Point 4: Land was purchased in April for $85,000

Point 5: Wages of a month are paid the following month. All overheads are paid the same month.

Point 6: Loan repaid in May $16,000

Point 7: Dividend of $75,000 is expected to be received in May