Cash Budget (Practical Problems): Exercise 3: (OMR in 000) Sales Overhead The following information relates to XYZ Ltd.: Month Wages incurred Materials purchased Feb 6 20 Mar 8 30 Apr , 10 25 May 9 35 Jun 12 30 July 10 25 AUR 25 Sep. 9 30 10 12 16 14 18 16 14 14 30 40 60 50 70 60 50 50 It is expected that cash balance on 31st May win be OMR 22,000 2. The wages may be assumed to be paid within the month they are incurred. 3. It is the company's policy to pay creditors for materials three months after receipt. 4. Debtors are expected to pay two months after delivery. 5. Included in the overhead figure is OMR. 2,000 per month which represents depreciation on two cars and one delivery van. 6. There is a one-month delay in paying the overhead expenses. 7 10% of the monthly sales are for cash and 90% are sold on credit. 8. A commission of 5% is paid to agents on all the sales on credit but, this is not paid until the month following the sales to which it relates; this expense is not included in the overhead figure shown. 9. It is intended to repay a loan of OMR. 25,000 on 30th June. 10 Delivery is expected in July of a new matching costing OMR. 45,000 of which OMR. 15,000 win be paid on delivery and OMR. 15,000 in each of the following months. 11. Assume that overdraft facilities are available, if required. You are required to prepare a cash budget for the three months of me. My and August