HASF Inc a distributor of cosmetics throughout Karachi, is in the process of assembling a cash budget for the first quarter 2015 the following information has been extracted from the company s’...

HASF Inc a distributor of cosmetics throughout Karachi, is in the process of assembling a cash budget for the first quarter 2015 the following information has been extracted from the company s’ accounting records

1. All sales divided in equal part between cash and credit sales. 40 % of credit sales are collected in the month of sales 50% are collected in the following month and remaining is uncollectible. Management believes that only 40% of the a/c receivable outstanding on December 2014 will be recovered that the recovery will be in January 2015


2. 50% of Purchase are paid for in the month of purchase the remaining 50% are paid for in the month after acquisition


3. The December 31 2014 balance sheet disclosed the following selected figures cash 10,000 a/c receivable 75,000 and a/c payable 22,000


4. Company Maintains a 20,000 minimum cash balance at all time. Financing is available in 1,000 multiples at an 4% interest rate interest is paid ate the time of repaying principle.


5. Additional date

                                                             Jan                   Feb                  March

            Sales                                        150,000           180,000           185,000

            Purchases                                90,000             100,000           140,000

            Cash operating cost                 31,000             24,000             45,000

            Proceeds from the sales of equipment                       -           5,000

Prepare a schedule of cash collection and  cash disbursement for Jan through March. Prepare a cash budget for Jan through March  and also prepare income statement