cash budget

Prepare a monthly Cash Budget in tabular form for the months February, March and April, showing the bank balance at each month’s [login to view URL] following data is available from the various functional budgets prepared at Congo Limited. January February March April $’000 $’000 $’000 $’000 Cash sales 1,500- jan 1,850-feb 1,620-mar 1,400-apr Credit sales 13,800 12,500 11,100 12,900 Purchase for resale 7,900 8,400 7,700 5,900 Salaries and wages 3,000 3,200 3,100 3,000 Overhead expenses 2,500 2,850 3,200 2,730 Other information is available as follows: 1. 5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale. 2. All goods are bought on credit from suppliers who allow 2% cash discount for payment in the month following purchase. 3. Salaries and wages are paid in the month in which they are incurred. 4. Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $250,000 per month for depreciation. 5. Two new vans costing $150,000 each, are to be paid for in April. 6. Taxation amounting to $326,000 is to be paid in March. 7. The balance at the bank as at 31st January is expected to be S$1,800,000