(Solved): Wanneroo Company is preparing the annual budgets for the upcoming year 2023 . Information for the ...

Wanneroo Company is preparing the annual budgets for the upcoming year 2023 . Information for the last quarter of year 2022 are provided as follows: 1. Sales for December 2022 were \( \$ 80,000 \) and sales are expected to increase by \( 10 \% \) each month from January 2023 onwards. All sales are made on credit terms. Customers are expected to pay for \( 60 \% \) of sales in the month of sale, \( 35 \% \) in the month following sale and the balance is considered to be bad debts. 2. Gross profit is budgeted at \( 35 \% \) of sales. 3. Since November 2022, it has been the policy to have a stock level at the end of each month sufficient to cover \( 35 \% \) of the following month's sales. All purchases will be made on credit and paid for in the month following purchase. 1. Administrative expenses are budgeted at \( \$ 11,000 \) per month, including \( \$ 1,600 \) for depreciation. Payments are to be made in the month in incurred. 5. Selling and distribution expenses are estimated to be \( 11 \% \) of monthly sales value. Payments for these expenses are to be made one month later. 6. The bank balance on 1 January 2022 is \( \$ 30,220 \) overdrawn as bank overdraft. REQUIRED Prepare a cash budget for the company for each of the three months June 2009, July 2009 and August 2009.