Prepare a cash budget for the three months ending on 30 June from the following information:

a. Month Sales

(Rs)

Materials

(Rs)

Wages

(Rs)

Overheads

(Rs)

February 14,000 9,600 3,000 1,700 March 15,000 9,000 3,000 1,900 Month Sales (Rs)
Materials (Rs)
Wages (Rs)
Overheads (Rs)
April 16,000 9,200 3,200 2,000 May 17,000 10,000 3,600 2,200 June 18,000 10,400 4,000 2,300

b. Credit terms:
Sales/debtors: 10% sales are on cash, 50% of the credit sales are collected next month and the balance in the following month.
Creditors Materials, 2 months Wages, ¼ month Overheads, ½ month

d. Cash and bank balance on 1 April is expected to be Rs 6,000.

e. Other relevant information:
i. Plant and machinery will be installed in February at a cost of Rs 96,000. The monthly instalments of Rs 2,000 are payable from April onwards.
ii. Dividend at 5% on the preference share capital of Rs 2,00,000 will be paid on 1 June.
iii. Advance to be received for sales of vehicles is Rs 9,000 in June.
iv. Dividends from investments amounting to Rs 1,000 are expected to be received in June.
v. Income tax (advance) to be paid in June is Rs 2,000.