Sales Purchases Rent Drawings Expenses Wages
Jan
Feb
Mar 12500 4600 2000 500 450 1200
Apr 9800 5400 2100 600 500 2400
May 13400 2300 2200 1000 1200 780
June 10500 7600 2150 600 300 1300
July 14500 7000 2500 700 500 1250
Rent is paid one month in advance
40% of sales are on a cash basis, the remainder is received 1 month later
60% of purchases are on a cash basis, the remainder is paid 2 months after purchase
Wages are paid one month in arrears
The company buys a new asset with payments: £500 in May and £500 in June.
The company sells equipment with 200 payment received in May and 2500 received in June
The bank balance on 1st April is 1500
Prepare the cash budget for the three months ending 30th June.
April
May
June
Receipts
Payments
Total Payments
Net Cash Flow