Barton Products Pty Ltd has an estimated overdraft of $6000 at 1 August. Barton Products is registered for GST. The following information has been taken from budgets for August:
Cash sales 42 400
Credit sales 85 000
Wages (gross) 14 600
Rent to be paid 8 000
Credit purchases of trade goods 26 000
Cash purchases of trade goods 18 400
Depreciation 1 600
Additional information
1. 90% of credit sales are collected in the month of the sale and 10% in the following month.
2. Credit sales for July are budgeted at $85 000.
3. Of purchases, 80% are paid for in the month after the purchase and 20% in the second month after the purchase.
4. Credit purchases for June are $15 000; for July $29 000.
5. Accrued wages at 1 August are $600 and at 31 August are $900.
6. PAYG tax deductions are calculated at 20% of gross wages paid. The amount is remitted to the ATO in the month following the payment of wages. Gross wages paid in July totalled $12 600.
7. Input tax credits apply to rent and payments for trade goods.
Prepare a cash budget for August. Show GST on sales and input tax credits separately