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The followng information appared in the balance sheet of xyz ltd at 30 jun 2015
cash at bank 28000
provision for income tax payable in aug 16000
provision of divident payable in june 25000
prepaid rent 2000
land 255 000
Actual slaes and purchase for june and estimated figure for july and aug
june july aug
sales 32000 295000 255000
purchase 160000 185000 166000
Sales are 20% cash and 80% credit.from previous experience, management knows that 50%of each months credit will be collected in same month as the sales, 50% in the followng month
The company only purchase inventory in credit. from past experience, management knows that 40% of purchase will be paid in the month of purchase and 60% in the following month.
other information.
Required
Problem 1: Prepare a cash budged for july and aug including a total column for the two month period and corect tittle
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