I Yates Cash budget for six months ended 30 June 2018

Jan

Feb

Mar

Apr

May

Jun

£

£

£

£

£

£

Cash inflows

Receipts from

11,000

15,000

24,000

29,000

34,000

34,000

trade receivables

Rent received

400

400

Total inflows

11,400

15,000

24,000

29,400

34,000

34,000

Cash outflows

Payments to trade payables

9,000

12,000

18,000

20,000

26,000

28,000

Wages and salaries

2,400

2,400

2,400

2,400

2,400

2,400

Insurance

100

100

100

100

100

100

Overheads

300

300

300

300

300

300

Drawings

500

500

500

500

500

500

Equipment

6,000

Total outflows

12,300

15,300

27,300

23,300

29,300

31,300

Net cash flow

(900)

(300)

(3,300)

6,100

4,700

2,700

Opening balance

4,750

3,850

3,550

250

6,350

11,050

Closing balance

3,850

3,550

250

6,350

11,050

13,750

Points to note:

•The opening balance of cash at the start of January is taken from the balance sheet’s cash at bank figure. The closing balance will then appear on the budgeted balance sheet as at 30 June.

•The receipts from trade receivables for January will be December’s sales as seen on the balance sheet as at 31 December 2017.

•Likewise, the payment for trade payables in January will be found on December’s balance sheet.

•The sales and purchases figures for June will not appear in the cash budget but will appear as trade receivables and trade payables on the balance sheet as at 30 June.

•Drawings appear in the cash budget but not in a budgeted profit and loss account.

The forecast set of final accounts willbe.