Topic: Business Process Technologies

The following information relates to Wareroom Trading Limited:

Additional information:

1. All sales are on credit, collectible 50% in 30 days, 25% in 60 days, 20% in 90 days, and balance regarded as bad debts.
2. All purchases are also on credit, payable 40% in 30 days and 30% each in 60 and 90 days respectively.
3. A new generator costing N455,000 will be acquired in February under a 30-day credit agreement.
4. An old car will be sold for N50,000 cash in February.
5. Monthly salaries are N80,000 payable as and when due.
6. Commission on sales is 5% payable to sales agents 2 months in arrears.
7. Company income tax of N235,000 is due and payable in January.
8. An investment is expected to bring in N60,000 gross in February, subject to 10% withholding tax.
9. The staff Christmas party in December is expected to cost the company a total of N90,000, though 60% of the expenses will be pushed for settlement the month following.
10. Assume an overdraft of N283,000 on 31 December 2019.

Required:

Prepare a monthly cash budget for Wareroom Trading Limited for the first three months of 2020 using a columnar format. (Total 20 Marks)