A & B Trading Company is planning to arrange for a six monthly overdraft facility with a bank. However, before finalization of any arrangement, it wants to know the estimated requirements of cash. For this purpose, it has hired you as consultant to make an estimated of the foreseeable cash requirements. The following is the basic data regarding various business cycles of the company:

Sales forecast for the six months are as under:

Months

Rs

February

March

April

700,000

750,000

800,000

May

850,000

June

600,000

July

900,000

August

1100,000

September

October

600,000

700,000

Closing stock is maintained at 20% of next month's projected cost of sales.

Gross profit ratio is maintained @ 25 % of the sales price.

Various expenses for the total of 6 months are as under:

Expenses

Rs.

Salaries & Wages

390,000

Repair & Maintenance

120,000

Insurance

6,000

Stores & Spares

270,000

Duties

360,000

Legal Charges

24,000

Recoveries from the debtors are made as follows:

50% in the month of sale

40% in the month following the month of sale

10% in the second month after sales

Trade Creditors are paid as under:

30% in the month of purchase

45% in the month following the month of purchase

25% in the second month after purchase

All other business expenses are paid in the month of expenses. Expenses are evenly spread throughout the year.

The company has a cash balance of Rs.50,000 and opening stock of 60,000 of February.

Required:

You are required to pr-epare a cash budget to facilitate the company's management in assessing the working capital requirement for the months April 2018 to September 2018.