Trolleybus Ltd is a small transport and courier company.
All work is provided on
30-day credit terms.
The cash balance at 1 October 2007 was $32,000.
following budgeted estimates of the next 3 months of operations have been made.
Wages and salaries paid
Depreciation on vehicles
Other expenses paid
Past experience suggests that debtors settle their accounts in the following pattern:
30% in the month of service
70% in the month following service
Fee revenue for September was $126,000.
Vehicle expenses are paid for in the month incurred except for December which
includes an amount for $7,000 that will not be paid until January.
Advertising expense shown for the 3 months is due to be paid in December.
As well as interest expense paid in December, a loan repayment of $15,000 is due to
be paid in November.
A dividend of $18,000 will be paid to Trolleybus Ltd shareholders in December.
Quarterly tax of $8,000 is also due to be paid in December.
Prepare a cash budget for the quarter ended 31