All purchases of ANGEL Merchandising are made on account, Eighty percent of the purchases are paid on the month of purchase and the remaining are paid the following month. ANGEL avails itself of the 5% discount in full provided by the suppliers in all purchases Sixty percent of the sales of ANGEL Merchandise are made on account. Eighty percent of the sales on account are made on the month of sale when the customers are granted 2% discount. Eighteen percent of the credit sales are collected the following month, but customers pay beyond the discount period of 10 days from the date of sale. The remaining sales on acoount is considered uncollectible. The following data is provided by the company as follows: Sales Purchases Operating Expenses December 2018 (actual) 250 000 160 000 45 000 January 2019 (estimated) 300 000 200 000 60 000 February 2019 (estimated) 380 000 240 000 70 000 March 2019 (estimated) 450 000 380 000 95 000 The cash balance of the business on January 1, 2019 is 80,000. The business also plans to buy additional equipment in February 2019 amounting to 150 000 and will make a down paymentof 60% on the month of purchase. The balance will be paid next month. TASK: Prepare the monthly cash budget of ANGEL Merchandising with supporting schedule for the 1st Quarter. (You are required to prepare cash budget for Jan, Feb, and Mar)
All purchases of ANGEL Merchandising are made on account, Eighty percent of the purchases are paid on the month of purchase and the remaining are paid the following month. ANGEL avails itself of the 5% discount in full provided by the suppliers in all purchases
Sixty percent of the sales of ANGEL Merchandise are made on account. Eighty percent of the sales on account are made on the month of sale when the customers are granted 2% discount. Eighteen percent of the credit sales are collected the following month, but customers pay beyond the discount period of 10 days from the date of sale. The remaining sales on acoount is considered uncollectible.
The following data is provided by the company as follows:
| Sales | Purchases |
Operating Expenses |
|
| December 2018 (actual) | 250 000 | 160 000 | 45 000 |
| January 2019 (estimated) | 300 000 | 200 000 | 60 000 |
| February 2019 (estimated) | 380 000 | 240 000 | 70 000 |
| March 2019 (estimated) | 450 000 | 380 000 |
95 000 |
The cash balance of the business on January 1, 2019 is 80,000. The business also plans to buy additional equipment in February 2019 amounting to 150 000 and will make a down paymentof 60% on the month of purchase. The balance will be paid next month.
TASK: Prepare the monthly
(You are required to prepare cash budget for Jan, Feb, and Mar)
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