Reference no: EM132583863

North Point Ltd.'s management has an estimated overdraft of $10,000 at 1 June. The following information has been taken from budgets for June.

Cash Sales : 53,000

Credit Sales: 92,000

Wages (gross): 22,000

Rent: 6,000

Credit purchases of trading stock: 18,000

Cash purchases of trading stock: 8,000

Loss on sales of asset: 3,000

• 60% of sales credit sales are collected in the month of sale and 40% in the following month.
• Credit sales for May was budgeted for $80,000
• 90% of credit purchases are paid in the month of purchase and 10% in the following month.
• Credit purchases for May was budgeted for $22,000
• Wages for May was budgeted for $15,000.
• PAYG tax deductions are calculated at 20% of gross wages and paid to ATO in the following month of wages paid.

Task:

Question 1: Prepare cash budget for June. (Note: For simplicity ignore GST in your calculations).

North Point Ltd.'s Policy and Procedures Manual requires Cash Budgets to be prepared in a spreadsheet package using the format on the following page.