From the above given information, I am to construct a tabular form of cash budget, however, I don't really understand the question, so I think my answer is wrong, can you try it for me so I can check with my answer? Q1.Below are the budgeted revenue and expenses for a restaurant for the year 2022.RevenueRM (*000)71,250SalesRM (*000)28,5004,200ExpensesCost of suppliesSalaries17,100900WagesDepreciationRepair and MaintenanceAdvertisement|Laundry|Interest on LoanMiscellaneous expensesUtilities3,0001,5002002,2002,300650Below 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 thecompany policy to analyse based on quarters.Percentage of sales24202432Quarter23475% of the sales are on a cash basis and the balance will be received in thenext quarter.The costs of supplies vary directly with sales and a constant stock value ofsupplies are kept. 20% of purchases of the food and drinks are for cash and thebalance are paid during next quarter.80% of the repairs and maintenance item is for a major redecoration to be paidin the third quarter.Wages, which are variable with sales, are paid in the same quarter which theyare 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 receivablesTrade payablesBank overdraftRM (*000)4,7507,050800Required:Prepare a tabular form of the cash budget for the four quarters of the year 2022.

Particulars Q1 Q2 Q3 Q4 Total Sales (a) 71,250 71,250 71,250 71,250 % of Sales pertaining to the…

Answered: Required: Prepare a tabular form of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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From the above given information, I am to construct a tabular form of cash budget, however, I don't really understand the question, so I think my answer is wrong, can you try it for me so I can check with my answer?

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.

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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