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Safe@Work Pty Ltd a wholesaler of work safety products is in the process of preparing a cash budget for December 2021. The following sales and purchases data have been compiled for the preparation of the budget:
September
October
November
December
$
Sales
1,010,000
1,020,000
1,080,000
1,000,000
Purchases
560,000
480,000
540,000
500,000
Additional Information
Required:
1. Prepare a cash budget for the month of December 2021.
2. Safe@Work Pty Ltd is considering changing its depreciation method from straight-line to reducing balance. What will be the effect of any increased depreciation expense on the cash balance?
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