Expected sales for the next (5) months (March - July, 2023) in GBB company is...
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Accounting
Expected sales for the next (5) months (March - July, 2023) in GBB company is as the following:
Months
March
April
May
June
July
Amount
80,000
88,000
100,000
112,000
120,000
Sales policy is to receive 35% of the sales in cash at the same month of sale, 65 % in the next month. Purchases cost is expected to be 60 % of each month sales and is paid completely a month after the purchases.
Other cash incomes
Rent to be received OMR 2000 in June and OMR 6000 in August
Loan is expected to be borrowed in June OMR 10,000.
Interest is to be received OMR 5,000 on June and OMR 3,000 in August
Other expenses:
Wages 30 % of each month sale and is paid in the same month.
Rent OMR 14,000 paid on April and OMR 10,000 on July.
Taxes OMR 8,000 to be paid in two equal parts in June and September.
Other Miscellaneous OMR 3000 is paid monthly
Opening balance: for May is OMR 12,000.
Instructions:
1-Prepare the Cash Budget for the second quarter of 2023 (May-July)?
Answer & Explanation
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