Question

Part B   

Khloe’s Café has provided the following estimates relating to the first quarter of the financial year beginning 1^st July 2020:

Cash Sales	$236,000
Credit Sales	$524,400
Receipts from Debtors	$329,000
Wages paid	$224,000
Café Furniture purchased	$79,600
Utilities paid	$29,800
Administration paid	$85,600
Depreciation of furniture	$2,890
Receipt of Loan	$80,000
Credit Purchases	$296,800

The cash balance at 1 July 2020 is expected to be $66,000.

Required

Prepare a cash budget for the quarter ending 30 September 2020.

Khloe’s Café

Cash Budget For the quarter ended 30 September 2020

Answer 1

Cash Budget for quarter ended 30 September 2020

Particulars	Amount ($)
Cash Balance as at 1st July 2020	66,000
Add: Receipts
Cash sales	2,36,000
Receipts from debtors	3,29,000
Receipt of loan	80,000
Less: Payments
Wages paid	2,24,000
Café Furniture purchased	79,600
Utilities paid	29,800
Administration paid	85,600
Cash Balance as on 30th September 2020	2,92,000