The sales figures below are before deduction of discounts. 40% of sales are on credit,...
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Accounting
The sales figures below are before deduction of discounts. 40% of sales are on credit, with payment received after 1 month. 60% of sales are for cash, with a discount of 4% being given. Payment for purchases is made in the month of purchase, with a cash discount of 4% being taken. The expenses figures include depreciation of 1,300 per month: the remaining expenses are all cash items and paid for in the month in which they are charged. Loan interest for the whole year is payable at the beginning of June. Such loan interest includes the relevant accrual in the balance sheet at 31 March 20X5 as well as a further 800.
Prepare the monthly cash budget for each of the next three months i.e., April to June 20X5. All figures should be rounded off to whole pounds.
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