T1-cash collection
Prepare Scheduled of expected cash collection as follows: | ||||||
Month | 1 | 2 | 3 | 4 | Total | |
Budgeted revenue | £ 110,000 | £ 230,000 | £ 140,000 | £ 270,000 | £ 750,000 | |
company collection policy | on the month of sale | 70% | ||||
the following month | 30% | |||||
1 | 2 | 3 | 4 | Total | ||
Beg.Account receivables | £ – 0 | |||||
January | £ – 0 | |||||
February | £ – 0 | |||||
March | £ – 0 | |||||
April | £ – 0 | |||||
Total | £ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 | |
T2-cash disbursement
Prepare Scheduled of expectedcash disbursement as follows: | ||||||
Month | 1 | 2 | 3 | 4 | Total | |
Budgeted Purchases | £ 580,000 | £ 110,000 | £ 65,000 | £ 150,000 | £ 905,000 | |
company collection policy | on the month of sale | 50% | ||||
the following month | 50% | |||||
1 | 2 | 3 | 4 | Total | ||
Beg.Account payable | £ – 0 | |||||
January | £ – 0 | |||||
February | £ – 0 | |||||
March | £ – 0 | |||||
April | £ – 0 | |||||
Total | £ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 | |
cash Budget
Preparing the cash budget | ||||||
1 | 2 | 3 | 4 | Total | ||
Beginning,cash balance | £ – 0 | |||||
Add(+) cash receipts : | ||||||
Total cash collection (T1) | £ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 | |
A | Total cash available | £ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 |
Less(-) cash disbursement : | ||||||
Total cash disbursement (2) | £ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 | |
Administrative expenses | £ – 0 | |||||
Cash dividends | £ – 0 | |||||
Equipment purchases | £ – 0 | |||||
B | Total cash disbursement | £ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 |
A-B = | Excess ( deficiency ) of cash available for disbursements |
£ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 |
Financing | £ 70,000 | |||||
Ending,cash balance | £ – 0 | £ – 0 | £ – 0 | £ – 0 | £ – 0 |