Question 3 Expected sales for the upcoming five months (May - September, 2023) in “GGG” company is as follows. Months May June July August September Amount RO 120000 130000 140000 150000 160000 Sales policy is to receive 33⅞ per cent of the sales in cash at the same month of sale, and the remaining 66⅔ per cent in the next month. The purchases cost is expected to be 66⅝ per cent of each month sales and is paid completely a month after the purchases. Other cash incomes Rent to be received RO 2500 in June and RO 6000 in August 2024. Loan is expected to be borrowed in June RO 12,500. Interest is to be received RO 5,800 on June and RO 3,750 in August 2023. Other expenses: Wages 33.33 % of each month sale is paid in the same month. Rent RO 17,000 paid on April and RO 12,000 on July. Taxes RO 11,500 to be paid in two equal parts in June and September. Other Miscellaneous RO 5,000 is paid monthly Opening balance for May is RO 24,000. Prepare the Cash Budget with comments for the moths from May to July of 2023.
Question 3
Expected sales for the upcoming five months (May - September, 2023) in “GGG” company is as follows.
|
Months |
May |
June |
July |
August |
September |
|
|
Amount RO |
|
120000 |
130000 |
140000 |
150000 |
160000 |
Sales policy is to receive 33⅞ per cent of the sales in cash at the same month of sale, and the remaining 66⅔ per cent in the next month. The purchases cost is expected to be 66⅝ per cent of each month sales and is paid completely a month after the purchases.
Other cash incomes
Rent to be received RO 2500 in June and RO 6000 in August 2024.
Loan is expected to be borrowed in June RO 12,500.
Interest is to be received RO 5,800 on June and RO 3,750 in August 2023.
Other expenses:
Wages 33.33 % of each month sale is paid in the same month.
Rent RO 17,000 paid on April and RO 12,000 on July.
Taxes RO 11,500 to be paid in two equal parts in June and September. Other Miscellaneous RO 5,000 is paid monthly Opening balance for May is RO 24,000.
Prepare the
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