Solution-Prepare cash budget for the months of April

Prepare cash budget for the months of April

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Reference no: EM133128276

Question - Cash Budgeting - On 1 April 2021 Stiggles Ltd commenced business with a cash balance of $60,000. Sales for the next six months are expected to be

April $40,000 July $200,000

May $60,000 August $250,000

June $120,000 September $100,000

70% of the sales are expected to be cash sales and 30% of credit sales are collected in the month of the sale and 70% in the month following sale. Expenses are expected to be $29 600 in April including depreciation $600, $40 200 in May including depreciation $600 and $50 600 in June including depreciation $600.

Required - Prepare cash budget for the months of April, May and June. Comment on the results.

Reference no: EM133128276

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Prepare cash budget for the months of April

Reference no: EM133128276

Reference no: EM133128276

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