Question

quarters Interestis
di
Management does not want to borrow cash more than what is the
early as possible. In any event, loans cannot be extended beyond four quarters in
computed and paid when repayment is made at the end of the quarter.
1,100. Cash balance
TAnswer: Interest payable in 3rd and 4th quarter is 675 and
end of 4th quarter i 23,825.1
P1-4.4. Prepare the cash budget for the three months ending 30th June, 2014 from the informat
given below
0
Answer
62,800 and 77
Ahe following
financial year.
Sales
Purchase of
Raw materi
的
行客》
Additiona
(1) The
main
(1) Oper
(in) On
(iv) Bor
Re
Wages Overbeads
Materials
Sales
* 9,600 23,000
1.700
* 14,000
9,000
3.000
1,900
15.000
March
9,200
3,200
2,000
16.000
3,600
10,000
17,000
2,200
May
10,400
4,000
2,300
18,000
(6) Credit terms: 10% sales are on cash, 50% of the credit sales are collected next month
and the balance in the following month.
2 Months
Creditors Materials
Wages
1/4 month
Overheads
1/2 month
(c) Cash and bank balance on 1st April, 2014 is expected to be * 6.000.
(d) Other relevant information is :
(2) Plant and machinery will be installed in February 2014 at a cost of 96,000. The
monthly installments of 2,000 is payable from April onwards.
9,000 in June.
(i) Advance to be received for sale of vehicles
(mm) Preference Dividends @ 5% is payable on Preference Capital of 2,00,000 on 1st June
1,000 are expected to be received in June.
(iv) Dividends from investments amounting to
(v) Income tax (advance) to be paid in June is 72,000.
300
Answer : Cash balance at the end of different months is * 3.950, * 3,000 and
respectively.)
P14.5. Ashok Ball Bearings Ltd. is preparing the cash budget for the first half of year 2014. The
projected sales and other items are given hereunder:
(Figures in )
Months
Prepar
Anav
Month
​

Answer 1

Answer:

I don't the answer sorry