From the following particulars, prepare a cash budget for the period October to December 2009, indicating the extent of the bank facilities the company will require at the end of each month:
|
Month |
Sales Rs. |
Purchases Rs. |
Wages Rs. |
|
August |
80,000 |
62,400 |
6,000 |
|
September |
1,00,000 |
75,000 |
7,000 |
|
October |
55,000 |
1,20,000 |
5,000 |
|
November |
90,000 |
1,25,000 |
5,000 |
|
December |
65,000 |
1,34,000 |
10,000 |
Additional information:
- 50% of credit sales are realized in the month following the sales and the remaining 50% in the second month following.
- Creditors are paid in the month following the month of purchase.
- Cash as bank on 1 October 2009 (estimated) Rs.12,500.