The following data refers to the budgeted cash paymentsand
DEF Ltd sells furniture to hotels. The following data refers to the budgeted cash paymentsand receipts for the six month period ending 30 June 2014.i) Bank balance on 1 January 2014 is judged to be £175,000 overdrawn.ii) Sales for the six months are budgeted as follows:January £425,000February £375,000March £400,000April £275,000May £375,000June £350,000• 30% are paid in the month of sale• 20% are paid one month after sale• 50% are paid two months after sale.iii) The following miscellaneous payments are budgeted to be:Rent £1,800 every monthRates £2,500 every monthHeating and lighting £4,000 for June and JanuaryElectrics £1,000 every monthStationery £1,500 every monthiv) Two computers are budgeted to be bought in February and March, the former costing£85,000 and the latter costing £100,000.v) Purchases of raw materials each month are budgeted as follows:January £140,000February £200,000March £220,000April £180,000May £200,000June £175,000Purchases are paid one half in the month of purchase and the other half in the following
