8. Cash sales is expected to be made as follows: August GHe 140,000SeptemberGH¢100,000GH€200,000OctoberNovemberGH$120,000GH€ 140,000DecemberThe pattern for the collection of debts from customers is expected to be as follows:a. 60% in the month of sales (3% cash discount allowed).b. 20% in the first month after the month of sale.c.15% in the second month after the month of sale.d. 5% is usually regarded as bad debt9. Excess funds are invested (in multiples of GH¢10,000) in short term securities, at an interest rate of 20%per annum.10. Borrowing must be paid together with any accrued interest whenever funds are available.RequiredPrepare cash budget, for the three month from October to December, 2021 showing cash balance atthe end of December. Nana Adom Company Limited is a wholesale company that deals in general goods. The followinginformation relates to the last quarter of the year 2021.1. Expenses: (in GHC)OctoberNovemberDecemberSelling & distribution20,00030,00034,000General & administration15,00018,00012,000Bad debts21,00015,00020,000Rate8,0006,00010,000Interest charges1,6002,0002,400Depreciation expenses30,00010,00010,000Expenses are payable in the month of incurrence.2.A contingent liability of GH¢10,000 is expected to mature in November3.Estimated cash balance at the end of September will be GHe 5000. Cash balances should not be less thanGH¢10,000. Cash can be borrowed in multiples of GH¢10,000 to finance any deficit at an interest rateof 15% per annum.4. The sales manager's salary, which is GHe 7000 per month, is expected to increase by GH€ 1000 everymonth after June.5.Motor vehicle will be purchased in November for GH$240,000. Depreciation for motor van should becalculated at 10% in December.6.Credit purchases have been budgeted as follows:GH€200,000SeptemberOctoberGH€ 240,000NovemberGH$200,000DecemberGH€300,00075% of purchases are paid for in the month of purchase and the remainder in the month after purchase.7. Details of expected sales (in units) are given below:August 20,000September 18,000October21,000November15,000December20,000Sales are likely to be made at a unit price of GH¢ 30.8. Cash sales is expected to be made as follows: August GH€ 140,000GH¢100,000SeptemberOctoberGH€200,000

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Answered: Prepare cash budget, for the three…

Business

Accounting

Prepare cash budget, for the three month from October to December, 2021 showing cash balance at the end of December.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 2021 the company “AROFAH” will prepare a cash budget. The cash receipts and disbursements plan for the first six months (January to June) are as follows: Admission Plan: Sales Receipts: Sales are made in cash as much as 50% and 50% credit of sales. Of credit sales, 60% is received one month after the month of sale and the remaining is received 2 months after the month of sale. The total receipts of receivables in January and February are IDR 200,000 and IDR 300,000, respectively. The acceptance plans are: A. The amount of sales are: B. Other receipts are: January IDR 1,400,000 January IDR 200,000 February IDR 1,500,000 February IDR 300,000 March IDR 1,500,000 March IDR 100,000 April IDR 1,600,000 April IDR 200,000 May IDR 1,700,000 May IDR 400,000 June IDR 1,650,000 June IDR 500,000 2. Expediture Plan : A. Purchase of raw materials: B. Purchase of…
Today is November 1, 2021. A continuous budget for the period from November 1, 2021 through October 31, 2022 is more reflective of current operating conditions than an operating budget for calendar year 2021 that was compiled in November 2020. True or false?
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please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) QUESTION 2 In the late June of each year, BOS Global Ltd prepares a cash budget for the next 6 months. The entity’s management wishes to prepare a cash budget in order to assess its likely requirements for short-term funds. Actual sales for May, and estimated sales for June, and for the next 7 months are as follows: Months Sales Revenues (Actual and Estimates) [GHS] Months Sales Revenues (Actual and Estimates) [GHS] May 20,000 September 50,000 June 28,000 October 94,000 July 24,000 November 74,000 August 26,000 December 52,000 January 40,000 Approximately 25 per cent of sales are for cash and 75 per cent are on credit. Past experience has shown that two-third of all credit sales are collected in the month immediately following the month of…
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