Question
CASH BUDGET 1. A company is expecting to have Rs. 32,000 cash in hand on 1.4.2008 and it requests you to prepare cash budget for
CASH BUDGET
1.
A company is expecting to have Rs. 32,000 cash in hand on 1.4.2008 and it requests
you to prepare cash budget for the three months, April to June 2008. The following
information is supplied to you:
Month
Sales
Purchases
Wages
Expenses
February
70,000
44,000
6,000
5,000
March
80,000
56,000
9,000
6,000
April
96,000
60,000
9,000
7,000
May
1,00,000
68,000
11,000
9,000
June
1,20,000
62,000
14,000
9,000
Other Information:
a)
Period of credit allowed by suppliers is two months
b)
25 % of sales for cash and the period allowed to customers for credit sales is one
month
c)
Delay in payment of wages and expenses one month
d)
Income tax Rs. 28,000 is to be paid in June 2008
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
