Question

wustration - 6
A Newly formed company desires to prepare a cash budget for 4 months from March
June 2014. The following information is available.
Months
Sales Purchases Wages Overhead
Feb
March
April
May
June
20,000
22,000
28.000
36,000
30,000
40,000
20.000
14,000
14,000
22,000
20,000
25,000
4.000
4,400
4,600
4,600
4.000
5,000
4.000
4,200
4,300
4,500
4,100
4,800
b)
Additional Information:
a) Cash balance on 1st Jan. 2014 * 10,000.
New machinery is to be installed at a cost at 20,000 in the month of February which
is to be paid in two equal installments in March and April.
* 12,000 is to be collected in March as 2nd call money.
Period of credit allowed by creditors is 2 months and allowed to customers 1 month.
50% of sales and purchases are for cash.
Delay in payment of wages month overheads are paid in the same month.
Solution:​

Answer 1

Answer:

I don't know about this accountancy or commerce or economics because I'm science group

Answer 2

I don't know the answer

don't mind it

mate