Answer:
(The data is missing so we cannot prepare the complete cash budget but lets see how it is prepared. The data given in the question has only been added in cash budget)
Cash Budget is prepared in same way as statement of cashflow. The detail cash budget format is given below.
Poster Company
Cash budget
1st and 2nd quarter
Cash from operations
Sales xxxx
Purchase (xxxx)
Other expenses paid (xxxx)
Net cash from operation xxxx
Cash from Investment activities
Sale of Assets (10,000+4,500) $ 14,500
Any investment made (xxxxxx)
Net Cash from investing activities xxxxxx
Cash from Finance Activities
Financial Charges paid ( xxxxxxx)
Dividednd paid $ 4,500
Net Cash from Financing activities xxxxxxxx
Net cash increase/ decrease xx/ (xx)
Opening balance $60,359
Cash balance at end xxxxx
(xxx represents missing values)
