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 |
