Byron ltd estimated sales for the forthcoming months are:
Nov:[email protected]
Dec [email protected]
Jan [email protected]
Feb [email protected]
Past experience has shown that colletions from sales average:
25%cash recevied in the month of the sales
55%in the month following tha sale
20%two months following tha sale
Prepare a cash budget?

If I were you, I'd prepare a spreadsheet with columns for the months, and lines for the entries.

The first line would have the sales amount listed under each month. The second line would use the info that 25% is received in the month of sale - so 25% of the sales number you show. The third line would show that 55% is collected in the following month - for example, under December you would enter 55% of the November sales. The next line would show 20% collected two months later, so 20% of November is collected in January. Once you do that, you will be able to add your columns for the cash budget.