Estimate the cash requirements of Mohit company for June 2009, from the following data:

(A) Sales Rs.

2009 February 25,000 March 20,000 April to June 30,000 per month Half of the sales are for cash. 90% of credit sales are collected in the month following the sale and the balance one month later.

(B) Goods are always bought for cash to avail the cash discount of 5%. The purchase budget for the second quarter (April to June) was 15,000 units per month at Re. 1 per unit.

(C) Salaries and wages for second quarter were budgeted at Rs. 5,000 per month.

(D) Manufacturing and other expenses budgeted for the quarter are: cash expenses Rs. 4,500; Depreciation Rs. 7,500; selling expenses Rs. 3,000; Administrative expenses (in April and May only) Rs. 2,000.

[Ans.: Cash requirement for April Rs. 2,500; May Rs. 92,500; June Rs. 17,500]