Designing of Cash Budget Problem 5 E From the following particulars, prepare cash budget for April - September. February March April May June July August September Sales 40,000 50,000 45,000 42,000 40,000 44,000 48,000 52,000 Purchases 10,000 Wages 4,500 12,000 5,000 4,500 14,000 13,000 14,000 15,000 16,000 15,000 4,200 4,000 4,400 4,800 5,200 Other 8,000 9,000 8,000 8,000 8,500 9,000 10,000 10,000 Expenses Additional information 1) 20% of the sales are on cash basis. Out of total credit sales, 70% is received in the month following sales and balance in two months following sales ii) All the purchases are on credit basis and are paid in one month delay iii) Time lag in payment of wages is 15 days iv) Lag in payment of other expenses is one month v) Expected cash balance as on 1st April is Rs.50,000 vi) Machinery worth Rs. 50,000 purchased in the month of March, payment to be made in the month of June. vii) Selling Expenses amount to 3% of sales.