October 2022: Ministry of Finance sends circular.November- February: Budget Proposal by each ministryMarch- April: Budget Doe by Ministry of FinanceApril- May: Ministry of PD&SI approves development budget.May 2023: Cabinet approve budgetEarly June: Budget presented in NA sent to senate for recommendationJune: NA passes Budget after discussionBefore July 1: President approves budget

October 2022: Ministry of Finance sends circular.November- February: Budget Proposal by each ministryMarch- April: Budget Doe by Ministry of FinanceApril- May: Ministry of PD&SI approves development budget.May 2023: Cabinet approve budgetEarly June: Budget presented in NA sent to senate for recommendationJune: NA passes Budget after discussionBefore July 1: President approves budget

Who is typically responsible for preparing the annual budget proposal in most countries? The President or Head of State The Central Bank The Ministry of Finance or Treasury Department The Parliament or Congress

Budget Master Ltd is in the process of preparing budgets for the period October toDecember 2018. Thefollowing information has been provided to assist in the budgeting process:(1) Budgeted monthly sales revenue is as follows:GHSOctober 2018 40,000November 2018 70,000December 2018 50,000January 2019 45,000(2) Sales are 20% cash and 80% credit. Credit sales are collected over a three month period: 15%in the month of sale, 70% in the month following sale and 15% in the second month followingsale. Bad debts of 5% are anticipated on all credit sales.(3) Total sales revenue in August 2018 amounts to GHS30,000 and September 2018’s total salesrevenue amounts to GHS36,000.(4) Cost of sales is expected to amount to 60% of sales revenue each month.(5) The business maintains its closing inventory levels at 75% of the following month’s cost ofsales. Inventory at the beginning of October 2018 is expected to amount to GHS18,000.(6) 50% of inventory purchased is paid in the month of purchase. The remaining 50% is paid forin the month following purchase. As at 30 September 2018, amount owed for purchases areGHS11,700.(7) A grant of GHS20,000 is expected to be received in mid-October 2018.(8) A second hand van which cost GHS8,000 three years ago is expected to be sold in December2018 for GHS3,000. At this time the expected net book value of the van is GHS1,800.(9) Equipment costing GHS4,500 will be purchased and paid for in November 2018. Theequipment will be depreciated on a straight line basis over three years.(10) Operating expenses are paid as incurred. These have been estimated as follows:GHSOctober 2018 12,800November 2018 18,900December 2018 14,600The above figures include depreciation on existing assets of GHS2,000 per month.(11) The cash balance on 1 October 2018 is expected to amount to GHS8,000Required:i) Calculate the purchases figure for each month from October 2018 to December 2018.

Month      2021     2022      2023  July   105,000     107,000     107,000  August   146,000     145,000     141,000  September     69,000     84,000     63,000  October   53,000     71,000     59,000

Which of the following stages in the budget formulation process comes after the initial proposal is drafted? Public budget hearings Budget execution Budget approval by the legislature Budget evaluation and monitoring