Prepare the required cash budgets for

Constructing budepts Bolle Cross Py Statement of financial position as at 31 May 2012 Cument assets Berk Accounts receivable Invertory 20.000 200,000 20.000 Non-current assets het of depreciation 310,000 190.000 500.000 Current liabilities Accounts payable Accruals wages Accruals expenses 80.000 2.500 2000 Capital and reserves 84500 415.500 500.000 Accounts payable represent purchases for May and accounts receivable the sales for April and May at $100,000 per month The directors are seeking finance from a bank and have produced the following profit forecast, but the bank, before deciding, has asked for a cash budget for the period showing the maximum anticipated finance needed from month to month. The profit forecast for the next six months is: Sales Gross profit (20% fixed Wages and salaries 100.000 20,000 20.000 1.670 8.000 19.670 100,000 150.000 30000 20.000 1.670 8.000 330 110,000 250.000 50,000 20,000 1.660 8.000 20,340 180,000 250.000 50,000 30,000 1,670 15.000 3,330 180.000 250.000 50,000 30.000 1.670 15.000 Nov 250.000 50,000 30,000 1,660 15.000 2340 180,000 Other expenses Net profit Stock requirement at month and 180.000 Further information is given below: 1. At each month end, one-eighth of a month's wages and salaries, and a quarter of other expenses, would be outstanding Rent at the rate of $20,000 per annum is payable quarterly in arrears on 31 August, 30 November, etc. Assume that one month's credit will be taken on purchases as previously, and that accounts receivable will continue to take two months' credit New fixed assets (additional) will be delivered in June and must be paid for on 31 August; cost $200,000. If the bank grants finance, it will continue an existing $50,000 overdraft facility, and give a five-year loan of a fixed amount as soon as necessary to maintain the overdraft within its limit for the whole period under review. Circle A Company is preparing its cash collections budget for the 2nd quarter of 2013. Budgeted sales are as follows: Budgeted sales Cash sales Credit sales Total sales Apr S10 000 24 000 S34 000 May $9 000 20 000 S29 000 Jun $7 500 16 500 S24 000 Accounts receivable at 31 March were $14 000. The budget assumes that 20% of credit sales are collected in the month of sale, and the remaining 80% are collected one month later. Required: Prepare the cash collections budget for April. For May. For June