Required: Prepare a tabular form of the cash budget for the four quarters of the year 2022.
Required: Prepare a tabular form of the cash budget for the four quarters of the year 2022.
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 2.4C
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From the above given information, I am to construct a tabular form of
![Q1.
Below are the budgeted revenue and expenses for a restaurant for the year 2022.
Revenue
RM (*000)
71,250
Sales
RM (*000)
28,500
4,200
Expenses
Cost of supplies
Salaries
17,100
900
Wages
Depreciation
Repair and Maintenance
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|Laundry
|Interest on Loan
Miscellaneous expenses
Utilities
3,000
1,500
200
2,200
2,300
650
Below are the additional information given to you for further analysis:
The expected pattern of sales for the year 2022 are as follows and it is the
company policy to analyse based on quarters.
Percentage of sales
24
20
24
32
Quarter
2
3
4
75% of the sales are on a cash basis and the balance will be received in the
next quarter.
The costs of supplies vary directly with sales and a constant stock value of
supplies are kept. 20% of purchases of the food and drinks are for cash and the
balance are paid during next quarter.
80% of the repairs and maintenance item is for a major redecoration to be paid
in the third quarter.
Wages, which are variable with sales, are paid in the same quarter which they
are incurred.
Utilities and interest on loan are paid half yearly in the first and third quarters.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49579436-550f-41e7-9ec2-e74476ae317b%2Fc01112f2-15e5-48bd-b5bc-d7cba49dec58%2F8m6ubyn_processed.png&w=3840&q=75)
Transcribed Image Text:Q1.
Below are the budgeted revenue and expenses for a restaurant for the year 2022.
Revenue
RM (*000)
71,250
Sales
RM (*000)
28,500
4,200
Expenses
Cost of supplies
Salaries
17,100
900
Wages
Depreciation
Repair and Maintenance
Advertisement
|Laundry
|Interest on Loan
Miscellaneous expenses
Utilities
3,000
1,500
200
2,200
2,300
650
Below are the additional information given to you for further analysis:
The expected pattern of sales for the year 2022 are as follows and it is the
company policy to analyse based on quarters.
Percentage of sales
24
20
24
32
Quarter
2
3
4
75% of the sales are on a cash basis and the balance will be received in the
next quarter.
The costs of supplies vary directly with sales and a constant stock value of
supplies are kept. 20% of purchases of the food and drinks are for cash and the
balance are paid during next quarter.
80% of the repairs and maintenance item is for a major redecoration to be paid
in the third quarter.
Wages, which are variable with sales, are paid in the same quarter which they
are incurred.
Utilities and interest on loan are paid half yearly in the first and third quarters.
![All other expense payments are made evenly over the year.
Below are the opening balances:
Items
| Trade receivables
Trade payables
Bank overdraft
RM (*000)
4,750
7,050
800
Required:
Prepare a tabular form of the cash budget for the four quarters of the year 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49579436-550f-41e7-9ec2-e74476ae317b%2Fc01112f2-15e5-48bd-b5bc-d7cba49dec58%2Farna5k_processed.png&w=3840&q=75)
Transcribed Image Text:All other expense payments are made evenly over the year.
Below are the opening balances:
Items
| Trade receivables
Trade payables
Bank overdraft
RM (*000)
4,750
7,050
800
Required:
Prepare a tabular form of the cash budget for the four quarters of the year 2022.
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