Summarized below are the Income and Expenditure forecasts for the month March to August 2008
|
Month |
Credit |
Credit |
Wages |
Mfg. |
Office |
Selling |
|
|
Sales |
Purchases |
Rs. |
Expenses |
Expenses |
Expenses |
|
|
Rs. |
Rs. |
|
Rs. |
Rs. |
Rs. |
|
March |
60,000 |
36,000 |
9,000 |
4,000 |
2,000 |
4,000 |
|
April |
62,000 |
38,000 |
8,000 |
3,000 |
1,500 |
5,000 |
|
May |
64,000 |
33,000 |
10,000 |
4,500 |
2,500 |
4,500 |
|
June |
58,000 |
35,000 |
8,500 |
3,500 |
2,000 |
3,500 |
|
July |
56,000 |
39,000 |
9,000 |
4,000 |
1,000 |
4,500 |
|
August |
60,000 |
34,000 |
8,000 |
3,000 |
1,500 |
4,500 |
You are given the following further information
v Plant costing Rs.16, 000 due for delivery in June. 10% on delivery and balance after three months.
v Advance tax Rs.8, 000 is payable in March and June
v Period of credit allowed, Suppliers 2 months and customers 1 month
v Lag in payment of manufacturing expenses half month
v Lag in payment of all other expenses one month
v Cash balance on 1st May 2008 is Rs.8, 000
Prepare Cash Budget for three months starting from 1st May 2008