Name :: William
Your Country :: South Africa
Question Title: :: cash budget
Explain your question in detail ::
how to calculate the Credit purchases if the cash sale is R180 000, Credit sales(R348 000), Purchases(R414000)salaries(R39480) and Sundry expenses(R12 300). A 10% discount on all cash sale is allowed,50% of all purchases are on credit and paid the following month of the transaction. cash in the bank is R35 000. credit sales is collected as follows: 50% within the next 30 days, 30% within the next 60 days, 20% within the next 90 days. I have to prepare the cash budget.
Answer : Cash budget is the estimate of cash payments and cash receipts. In this question, you have to see which month you have to prepare cash budget. Just use excel and show all the payments in on side and all the receipts in other side. End will show, how much will you have the cash in hand.
