From the following information supplied by Bright Ltd, prepare a Cash Budget for the period from 1 September 1989 to 31 December 1989:
|
Months |
Sales |
Purchases |
Wages |
Factory Expenses |
Office Expenses |
|
June |
25,000 |
11,800 |
1,600 |
1,200 |
2,800 |
|
July |
24000 |
12,000 |
1,680 |
1,170 |
3,000 |
|
August |
22950 |
12,600 |
1,740 |
1,230 |
3,600 |
|
September |
23,400 |
11,550 |
1,740 |
1,260 |
4,200 |
|
October |
27,000 |
11,250 |
1,770 |
1,530 |
4,800 |
|
November |
28,500 |
13,200 |
1,770 |
1,800 |
3,900 |
Additional Information:
- Expected Cash Balance on 1 September—Rs. 10,500.
- Period of credit allowed to Debtors—2 months.
- Period of credit allowed by Creditors—1 month.
- Lag in payment of wages, selling expenses and overheads—1 month.
- Selling commission @ 2% on sales is payable for 1 month after sales.
- Expenditure on machinery worth Rs. 50,000 is payable in October.
- Expected Cash Sales per month is Rs. 15,000. No commission is payable on Cash Sales.