Example 8: Using the following information, draw a budget for three months starting from October 2016: 1) Opening cash balance in October 4,000. 2) Cash Sales October: 735,000; November 730,000; December; 25,000. 3) Credit purchases - September 20,000; October 14,000; November 715,000; December 14,000. 4) Suppliers allow one-month period of credit. 5) Dividend receivable in November is 5,000. 6) Advance tax payable in October is 4,000 payable. 7) Sale of an old asset during the month of October is 10,000.

Example 8: Using the following information, draw a budget for three months starting from October 2016: 1) Opening cash balance in October 4,000. 2) Cash Sales October: 735,000; November 730,000; December; 25,000. 3) Credit purchases - September 20,000; October 14,000; November 715,000; December 14,000. 4) Suppliers allow one-month period of credit. 5) Dividend receivable in November is 5,000. 6) Advance tax payable in October is 4,000 payable. 7) Sale of an old asset during the month of October is 10,000.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 1EP

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