T1-cash collection Prepare Scheduled of expected cash collection as follows: Month

T1-cash collection

Prepare Scheduled of expected cash collection as follows:
Month 1 2 3 4 Total
Budgeted revenue £ 110,000 £ 230,000 £ 140,000 £ 270,000 £ 750,000
company collection policy on the month of sale 70%
the following month 30%
1 2 3 4 Total
Beg.Account receivables £ – 0
January £ – 0
February £ – 0
March £ – 0
April £ – 0
Total £ – 0 £ – 0 £ – 0 £ – 0 £ – 0

T2-cash disbursement

Prepare Scheduled of expectedcash disbursement as follows:
Month 1 2 3 4 Total
Budgeted Purchases £ 580,000 £ 110,000 £ 65,000 £ 150,000 £ 905,000
company collection policy on the month of sale 50%
the following month 50%
1 2 3 4 Total
Beg.Account payable £ – 0
January £ – 0
February £ – 0
March £ – 0
April £ – 0
Total £ – 0 £ – 0 £ – 0 £ – 0 £ – 0

cash Budget

Preparing the cash budget
1 2 3 4 Total
Beginning,cash balance £ – 0
Add(+) cash receipts :
Total cash collection (T1) £ – 0 £ – 0 £ – 0 £ – 0 £ – 0
A Total cash available £ – 0 £ – 0 £ – 0 £ – 0 £ – 0
Less(-) cash disbursement :
Total cash disbursement (2) £ – 0 £ – 0 £ – 0 £ – 0 £ – 0
Administrative expenses £ – 0
Cash dividends £ – 0
Equipment purchases £ – 0
B Total cash disbursement £ – 0 £ – 0 £ – 0 £ – 0 £ – 0
A-B = Excess ( deficiency )
of cash available for disbursements
£ – 0 £ – 0 £ – 0 £ – 0 £ – 0
Financing £ 70,000
Ending,cash balance £ – 0 £ – 0 £ – 0 £ – 0 £ – 0

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