Prepare a cash budget for the month of december 2023

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Reference no: EM133492752

Question: Smart Toys Pty Ltd a wholesaler of toy products is in the process of preparing a cash budget for December 2023. 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

All sales are on credit. The company collects 70% in the month of sale, 20% in the month following the sale and 10% two months following the sale.
30% of all purchases are paid for in the following month they are purchased, with the remaining 70% paid for two months following the purchases.
Warehouse equipment costing $174,000 is expected to be acquired and paid for in December.
The company will repay the whole amount of its short-term loan $124,000 in December.
The selling and distribution expenses are $97,000 each month. Administrative expenses are $112,000 per month, included $13,000 of assets depreciation expense. Expenses are paid in the month they are incurred.
The cash balance on 1st December 2023 is $23,000.

Prepare a cash budget for the month of December 2023.

Reference no: EM133492752

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