Prepare a Cash Budget for the 3 months that is ending on 30 June 2009 from the following information:
|
Month |
Sales Rs. |
Materials Rs. |
Wages Rs. |
Overheads Rs. |
|
February |
14,000 |
9,000 |
3,000 |
1,700 |
|
March |
15,000 |
9,000 |
3,000 |
1,900 |
|
April |
16,000 |
9,200 |
3,200 |
2,000 |
|
May |
17,000 |
10,000 |
3,600 |
2,200 |
|
june |
18,000 |
10,400 |
4,000 |
2,300 |
- 10% of the sales are in cash.
- Credit terms are:
Debtors: 50% of the Credit Sales are collected next month and the balance in the following month.
Creditors: For Materials – 2 months; For Wages – 1/4 month; For Overheads – 1/2 month.
- Plant & Machinery will be installed in February 2009 at a cost of Rs. 96,000. The monthly instalment of Rs. 2,000 is payable from April onwards.
- A Dividend @ 5% on Preference Share Capital of Rs. 2,00,000 will be paid on 1 June.
- Advance to be received for sale of vehicles of Rs. 9,000 in June.
- Dividend from investments amounting to Rs. 1,000 is expected to be received in June.
- Income Tax (advance) to be paid in June of Rs. 2,000.
- Cash and Bank Balance on 1 April 2002 is expected to be Rs. 6,000.