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required: explain for me from where and how we got the number and calculate from (cash received from debtors ) for 3 month

required: explain for me from where and how we got the number and calculate from (cash received from debtors ) for 3 month

Example From the following data forecast the cash position at the end of April, May and June 2015 Month Sales ($) Purchase($) Wages($) Sales expenses(S) 2,500 February March 100,000 110,000 60,000 120,000 90,000 100,000 110,000 115,000 90.000 10,500 11,000 7.000 10,500 2,600 2,000 April May June 3,000 2,200 80.000 8,500 Further information 1. Sales at 10% realized in the month of sales. Balance equally realized in two subsequent months. 2. Purchase: Creditors are paid in the following month of supply. 3. Wages: 20% paid as arrears in the following month. 4. Sales expenses are paid in the month sales. 5. Income tax $30,000 payable in June. 6. Dividend $12,000 payable in June. 7. Income from investments $5,000 received half-yearly in March and September 8. Cash in balance on 01-04-2015 is $50,000 Solution Cash budget for three months ending June 2015 April (5) 50,000 May(S) 40,700 June($) 6,400 6,000 12,000 76,500 8,000 81.000 94,500 150,500 129,200 95,400 Particulars Opening balance of cash (+) Receipt of cash Cash sales (10%) Cash received from debtors Total Receipt (-) Cash payments Creditors for purchase Wages (80%) Arrears (20%) Sales expenses Income tax Dividend Total payment Closing cash balance 100,000 110,000 115,000 5,600 2,200 8,400 1,400 3,000 2,000 6,800 2,100 2,200 30,000 12.000 168,100 (72,700) 109,800 40,700 122,800 6,400

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