Prepare Summerlea council’s cash budget from January 2022 to April 2022 from the following budgeted data

1. Prepare Summerlea council’s cash budget from January 2022 to April 2022 from the following budgeted data.

The following additional information is available:

1. 35% of the customers pay cash and the remainder take 1 month to pay.
2. Rent is paid in advance for 6 months on 1^st of May and 1^st of November each year.
3. 45% of the purchases are paid for after 1 month and the remainder in 2 months’ time.
4. Wages are paid in the current month.
5. Other overheads are paid after 2 months.
6. Capital expenditure is paid in the following month.

Opening cash balance for June was £2,800 overdraft.