ABC Co. wished to arrange overdraft facilities with its bankers during the period April 2008 to June 2008 when it will be manufacturing mostly for the stock. Prepare a Cash Budget for the above period from the following data, indicating the extent of the bank facilities the company will require at the end of each month.
|
Particulars |
Sales |
Purchases |
Wages |
|
February 2008 |
Rs.1, 80,000 |
Rs.1, 24,800 |
Rs.12, 000 |
|
March |
1, 92,000 |
1, 44,000 |
14, 000 |
|
April |
1, 08,000 |
2, 43,000 |
11, 000 |
|
May |
1, 74,000 |
2, 46,000 |
10, 000 |
|
June |
1, 26,000 |
2, 68,000 |
15, 000 |
Additional Information:
1. 50% of the credit sales are realized in the month following the sales and remaining 50% in the second month following. Creditors are paid in the month following the month of purchases. There are no cash sales or cash purchases
2. Cash at bank [overdraft] estimated on 1st April 2008 is Rs.25, 000