Prepare a cash budget for the three months ending 31 October, showing cash receipts and cash payments. Assume sales revenue of $80 per unit.

Here is the cash budget for Tanya Limited for the three months ending 31 October.

Step 1: Calculate Cash Receipts

• Sales Revenue: Selling price is $80 per unit.
  • July Sales: 1,100 \text{ units} \times \80 = $88,000$
  • August Sales: 1,150 \text{ units} \times \80 = $92,000$
  • September Sales: 1,200 \text{ units} \times \80 = $96,000$
  • October Sales: 1,310 \text{ units} \times \80