From the following information, prepare the Cash Budget for the 3 months—September, October and November of 2004:
|
Factory |
Office |
||||
|
Month |
Sales |
Purchase |
Wages |
Expenses |
Expenses |
|
July |
50,000 |
28,000 |
3,400 |
3,200 |
4,000 |
|
August |
65,000 |
32,500 |
3,700 |
3,300 |
4,200 |
|
September |
70,000 |
37,200 |
3,900 |
3,450 |
4,350 |
|
October |
60,000 |
29,500 |
4,200 |
3,600 |
4,420 |
|
November |
84,000 |
39,700 |
4,500 |
3,700 |
4,800 |
Additional Information:
- A Sales Commission at 5% on sales, which is due in the month following the month in which the sales dues are collected, is payable in addition to the Office Expenses.
- The period of credit allowed to Debtors is 2 months.
- A month’s credit is obtained from the Creditors.
- Wages are paid on the 1st and 16th of each month in respect of dues for a period of 15 days, preceding those days.
- Other Expenses are paid in the month in which they are due.
- For purchase of an asset under instalment-payment system, an instalment of Rs. 1,250 per month is paid.
- Bank Balance on 1st September is Rs. 15,200.