Reference no: EM13878917

CZD Ltd supply records, tapes and CDs to retail outlets. You are presented with the following financial information and are required to complete the cash budget for the three months ending 31 December 2005.

Opening cash 1/10/05 is £16,000. Creditors give one month's credit.

Salaries are paid in the same month as they are earned.

Other expenses are paid one month in arrears and include £2000 depreciation each month. Credit sales are settled 30% in the month of the sale and the remainder one month following the sale.

Month	Cash sales £	Credit sales £	Purchases £	Salaries £	Expenses £
September	25,000	40,000	70,000	6,000	7,000
October	28,000	45,000	68,000	6,000	7,000
November	28,000	40,000	59,000	6,000	7,000
December	30,000	38,000	60,000	6,000	7,000

(a) Prepare a cash budget for the months of October, November and December 2005.

(b) Prepare a schedule of outstanding debtors at the end of each of the months of October, November and December 2005.