Assignment (Week-13)

Question: Prepare cash budget for the months of Jan to April 2023.

MonthsSalesPurchasesWagesManufacturing ExpensesAdministration expensesSelling expensesNov 202230,00015,00030002501060500December35,00020,000320012251040550Jan 202325,00015,00025009901100600February30,00020,000300010501150620March35,00022,500240011001220570April40,00025,000260012001180710

Additional Information:

1. Customers are allowed a credit period of 2 months.
2. A dividend of $10000 is payable in April.
3. Plant purchased on 15^th Jan for $5000 and a building purchased on 1^st March & payments are made in monthly instalments $2000 each and paid in the month of march & April $2000 each.
4. Creditors are allowed a credit of 2 months.
5. Wages are paid on the 1^st of the next month.
6. Lag in payment of expenses is 1 month.
7. Balance of cash in hand on 1^st Jan is $15000