Suppose Revathi Ltd expects only cash receipts in October from collections of receivables. Cash receipts in October are based on anticipated collections of sales that were made in August and September, and anticipated sales for October, and are projected as shown in The beginning cash balance is INR 67,000. Cash disbursements are anticipated as follows:

Material purchases (for September)

INR 2,00,000

Manufacturing labour

2,09,000

Manufacturing variable overhead

1,04,500

Fixed manufacturing overhead

80,000

(excluding non-cash items)

Fixed selling, general and administration

45,000

(excluding non-cash items)

Cash payments for capital acquisitions

1,20,000

(from the capital budget)

Payments of short-term borrowings

70,000

Total disbursements for October

8,28,500

Table 4.11 Cash receipts in Octobe

Month

Sales volume

Unit sales
price

Percentage collected In October

Collections In October On INR)

August

44,000

INR 50

20

4,40,000

September

50,000

INR 50

30

7,50,000

October

40,000

INR 50

50

10,00,000

21,90,000

Prepare the cash budget for the firm for the month of October.