Reference no: EM132621974
Question - James and Jane operate a business in max street market. The information below was extracted from their financial records for the year 2020;
Month Sales Purchases Wages Expenses
January (Actual) 80,000 45,000 20,000 5,000
February (Actual) 80,000 40,000 18,000 6,000
March (Actual) 75,000 42,000 22,000 6,000
April (Budgeted) 90,000 50,000 24,000 7,000
May (Budgeted) 85,000 45,000 20,000 6,000
June (Budgeted) 80,000 35,000 18,000 5,000
Additional information
(a) All the purchases and sales are in cash.
(b) The workers are paid half wages in the current month and the other half is paid in the following month.
(c) Rent of sh. 500 is paid monthly.
(d) Cash in April, was sh. 15,000 and this balance is maintained every month with the excess cash being put in fixed deposit account.
Required - Make a cash-budget of a company for April, May and June 2020 using the information above?