CASH BUDGET

Feb Mar Apr May June July Aug Sept Oct. Nov Dec Jan.
2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021
GHS GHS GHS GHS GHS GHS GHS GHS GHS GHS GHS GHS
000 000 000 000 000 000 000 000 000 000 000 000
Receipt
Cash Sales 50 50 50 50 50 50 50 50 50 50 50 50
Credit Sales 147 147 147 147 147 147 147 147 147 147
Total receipts 50 50 197 197 197 197 197 197 197 197 197 197

Expeditures
Purchases - 160 160 160 160 160 160 160 160 160 160 160
Variable cost 6 6 6 6 6 6 6 6 6 6 6 6
Fixed Cost less 13.67 13.67 13.67 13.67 13.67 13.67 13.67 13.67 13.67 13.67 13.67 13.67
depreciation
Machinery purchased 520
Inventory purchased 200
Total Expenditures 739.67 179.67 179.67 179.6 179.67 179.67 179.6 179.67 179.6 179.67 179.6 179.67
7 7 7 7
Net Cash Flow (689.67) (129.67 17.33 17.33 17.33 17.33 17.33 17.33 17.33 17.33 17.33 17.33
)
Opening Balance /loan 800 110.33 (19.34) (2.01) 15.32 32.65 49.98 67.31 84.64 101.97 119.3 136.63
Closing Balance 110.33 (19.34) (2.01) 15.32 32.65 49.98 67.31 84.64 101.9 119.3 136.6 153.96
7 3
 WORKINGS
1. Purchases
Gross profit = 25%
Total sales per month = cash sales + credit sales
= 50 + 150
= 200
If 125% = Sales
100% = purchases
Monthly purchases = 100%/125% x 200 = GHS 160

2. Depreciation
= 10% x 520 x ½ = 4.33

3. Credit Sales
Total credits sales = 150
Bad debt 2%
Actual amount received = 98% x 150
= 147 cedis