Answer to Question #51165 in Microeconomics for Paul Muchira

Question

ABC limited has the following details for the period ended 31st December 2012.
Sales Purchases Expenses
January 100,000 40,000 20,000
February 120,000 25,000 28,000
March 150,000 30,000 30,000
April 200,000 50,000 42,000
May 280,000 120,000 150,000
June 400,000 150,000 180,000

The opening cash balance for the firm was Ksh.150,000/-,

Sales are made on credit and paid for as follows: 50% cash within the month of the sale
25% cash in the following month
25% cash in the third month

Purchases and expenses are made on credit and paid for as follows:
50% cash the month of purchase:
50% cash the following month
Required :
Prepare an analysis sheet showing the following:
i)Cash sales
ii)Cash purchases
iii)Cash expenses
iv)A Cash budget