Question

A Company wants to prepare cash budget based on the following information. Forecast the cash position for the months of October, November and December. Complete company’s estimate. Sales (Rs.) Purchases (Rs.) Salaries (Rs.) Other expenses (Rs.) August 440000 168000 20000 11000 September 260000 520000 74000 16000 October 160000 304000 56000 12000 November 232000 412000 50000 24000 December 172000 320000 56000 12000 Additional Information: Sales: 40% realized in the month of sales, discount on sales 3% in the same month. Balance realized equally in two subsequent months by calculating on gross sales. Accounts receivable consists of Rs. 100000, company receives 60% in October, and balance received equally in last two months. Company paid against Purchases in the month following the month of purchases. 30% of the salaries paid in the month of occurrence and remaining is paid in following month. Other expenses paid in the month of occurrence. Rent: Rs 1,000 per month paid quarterly in advance in current year during the month of December. Income-tax; Installment of advance tax of next year Rs 35,000 due on 15th December. Cash in hand: Rs 5,000 on September 30. Company arranges financing in case of deficit, if deficit is below Rs. 200000, company takes loan from bank, if more than Rs. 200000, company issues shares. Loan installment is due during November at Rs. 8000.

Answer 1

Answer:

11 hours ago · Forecast the cash position for the months of October, ... Complete company's estimate. Sales ... Purchases (Rs.) ... Other expenses (Rs.) August 440000 168000 20000