Assignment 2 - Cash budget XYZ Limited has the following budgeted details. Prepare a cash budget for the months of Jan, Feb, Mar, Apr 2019 . On 19 Jan, the company will commence business with cash worth Dhs.100,000. Later in the month it will acquire buildings at a cost of Dhs.50.000, furniture at a cost of Dhs. 5,000 and machinery at a cost of Dhs.25.000. Payment is to be made in the months of Feb. Mar and Apr respectively. Sales will be Dhs. 50,000 in Jan, Dhs. 55.000 in Feb, Dhs. 45,000 in Mar, and Dhs.60.000 in April. 40% are credit sales. P. Credit Purchases are worth Dhs.40.000 each month. Creditors to be paid on the last day of the month in which the goods are to be bought and payment for all sales will be received in the month after the one in which the goods are sold. Overhead expenses will amount to Dhs. 10,000 each month except in March when they will amount to Dhs. 15,000. All the expenses are to be paid in the next month in which they were incurred. An initial stock of goods is to be bought for cash in January at a cost of Dhs.15,000 The company will receive cash dividends of Dhs.25,000 in Feb from its stock investments Interest on Dhs.500,000 @ 6% p.a. on debentures is payable on quarterly basis during Mar, June, Sep and Dec. Particular Opening cash balance Receipts Total receipts Payments Total payments Closing cash balance