Items Quarter 1 Quarter 2 Quarter 3 Quarter 4Gross sales 500,000 600,000 400,000 300,000Gross purchases 250,000 150,000 200,000 180,000Paid cash equipment ----- ----- 180,000 -----Paid cash utilities ----- 500,000 ----- -----Salary and wages 21000 26000 24000 -----Interest credit 10,000 5000 10,000 35000Interest debit 8000 6000 19000 4000Overhead expenses 4000 3000 3500 3200Minimum reserve of cash 300,000 300,000 300,000 300,000If you know that:-The company can borrow money when required with the loan’s interest rate of 10% of theamount borrowed during the period.- There are 20% of gross sales are considered as cash sales.- Credit sales are collected as follows: 70% in the same quarter of sales, 20% in the followingquarter, and 10% in the quarter after.- Overhead expenses include 3000 EGP depreciation/ quarter.- There are 10% of gross purchases are considered as cash purchases.- Debit purchases are paid as follows: 60% in the same quarter of purchases, 25% in thefollowing quarter, and 15% in the quarter after. prepare cash budget with all items table
Items Quarter 1 Quarter 2 Quarter 3 Quarter 4
Gross sales 500,000 600,000 400,000 300,000
Gross purchases 250,000 150,000 200,000 180,000
Paid cash equipment ----- ----- 180,000 -----
Paid cash utilities ----- 500,000 ----- -----
Salary and wages 21000 26000 24000 -----
Interest credit 10,000 5000 10,000 35000
Interest debit 8000 6000 19000 4000
Minimum reserve of cash 300,000 300,000 300,000 300,000
If you know that:
-The company can borrow money when required with the loan’s interest rate of 10% of the
amount borrowed during the period.
- There are 20% of gross sales are considered as cash sales.
- Credit sales are collected as follows: 70% in the same quarter of sales, 20% in the following
quarter, and 10% in the quarter after.
- Overhead expenses include 3000 EGP
- There are 10% of gross purchases are considered as cash purchases.
- Debit purchases are paid as follows: 60% in the same quarter of purchases, 25% in the
following quarter, and 15% in the quarter after. prepare
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