The following data is available from the various functional budgets prepared at Congo Limited.

Prepare a monthly Cash Budget in tabular form for the months of February, March and April; showing the bank balance at each month’s end.

The following data is available from the various functional budgets prepared at Congo Limited.

 

                                                       January               February           March                  April 

                                                       

CASH SALES                                    128                      84                     72                     90 

Credit Sales                                    1,140                    760                    640                  800 

Purchases for Resale                         880                    560                    520                  320 

Salaries and Wages                          266                     280                  238                   248 

Overhead Expense                           160                      150                  160                   140 

  

Other information is available as follows:

 

1.  5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale.

2.  All goods are bought on credit from suppliers who allow 2½% cash discount for payment in the month following purchase.

3.  Salaries and wages are paid in the month in which they are earned.

4.  Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $28,000 per month for depreciation.

5.  Two new vans costing $21,000 each are to be paid for in April.

6.  Taxation amounting to $175,000 is to be paid in March.

7.  The balance at the bank as at 31st January is expected to be $222,000.

 000                  CASH SALES                                    128                      84                     72                     90 Credit Sales                                    1,140                    760                    640                  800 Purchases for Resale                         880                    560                    520                  320 Salaries and Wages                          266                     280                  238                   248 Overhead Expense                           160                      150                  160                   140   Other information is available as follows: 1.  5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale.2.  All goods are bought on credit from suppliers who allow 2½% cash discount for payment in the month following purchase.3.  Salaries and wages are paid in the month in which they are earned.4.  Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $28,000 per month for depreciation.5.  Two new vans costing $21,000 each are to be paid for in April.6.  Taxation amounting to $175,000 is to be paid in March.7.  The balance at the bank as at 31st January is expected to be $222,000. 000                 CASH SALES                                    128                      84                     72                     90 Credit Sales                                    1,140                    760                    640                  800 Purchases for Resale                         880                    560                    520                  320 Salaries and Wages                          266                     280                  238                   248 Overhead Expense                           160                      150                  160                   140   Other information is available as follows: 1.  5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale.2.  All goods are bought on credit from suppliers who allow 2½% cash discount for payment in the month following purchase.3.  Salaries and wages are paid in the month in which they are earned.4.  Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $28,000 per month for depreciation.5.  Two new vans costing $21,000 each are to be paid for in April.6.  Taxation amounting to $175,000 is to be paid in March.7.  The balance at the bank as at 31st January is expected to be $222,000. 000                  CASH SALES                                    128                      84                     72                     90 Credit Sales                                    1,140                    760                    640                  800 Purchases for Resale                         880                    560                    520                  320 Salaries and Wages                          266                     280                  238                   248 Overhead Expense                           160                      150                  160                   140   Other information is available as follows: 1.  5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale.2.  All goods are bought on credit from suppliers who allow 2½% cash discount for payment in the month following purchase.3.  Salaries and wages are paid in the month in which they are earned.4.  Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $28,000 per month for depreciation.5.  Two new vans costing $21,000 each are to be paid for in April.6.  Taxation amounting to $175,000 is to be paid in March.7.  The balance at the bank as at 31st January is expected to be $222,000. 000 

CASH SALES                                    128                      84                     72                     90 Credit Sales                                    1,140                    760                    640                  800 Purchases for Resale                         880                    560                    520                  320 Salaries and Wages                          266                     280                  238                   248 Overhead Expense                           160                      150                  160                   140   Other information is available as follows: 1.  5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale.2.  All goods are bought on credit from suppliers who allow 2½% cash discount for payment in the month following purchase.3.  Salaries and wages are paid in the month in which they are earned.4.  Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $28,000 per month for depreciation.5.  Two new vans costing $21,000 each are to be paid for in April.6.  Taxation amounting to $175,000 is to be paid in March.7.  The balance at the bank as at 31st January is expected to be $222,000.