Reference no: EM132552086

Tasman traders is in the process pf preparing a cash budget for july 2020.

All sales are on credit. The company collects 60% in the month following the sale and 40% two months following the sale.

All purchases of stock are paid for one month after the purchase.

The selling and distribution expenses are $38000 each month.

Administartive expenses are $80000 per month.

Selling & distributionand administrative expenses are paid in the same month they are incurred.

The cash balance on 1st july 2020 is $8000

The following sales and purchases data in 2020 have been compiled for the preparation of the budget.

Purchases of april 150000, may 180000, june 170000, july 200000

sales of april 400000, may 430000, june 420000, july 440000

Required

Question 1: cash budget for the month of july 2020 using the heading provided.