Designing of Cash Budget Problem 6 Prepare a C ash Budget for the three months ending 30th June 2006 from the information given below: Month Sales OMR. February March April May June Materials OMR. Wages OMR. 14,000 9,600 3,000 15,000 9,000 3,000 16,000 9,200 3,200 17,000 18,000 10,000 3,600 10,400 -4,000 Overheads OMR. 1,700 1,900 2,000 2,200 2,300 (b) Credit terms are: Sales and debtors-10% sales are on cash, 50% of the credit sales are collected next month and the balance in the following month. Creditors- Materials 2 months Wages 1/4 month Overheads 1/2 month (c) Cash and bank balance on 1st April, 2006 is expected to be OMR. 6,000. (d) Other relevant information are: (i) Plant and machinery will be installed in February 2006 at a cost of OMR. 96,000. The monthly instalment of OMR. 2,000 is payable from April onwards. (ii) Dividend @ 5% on Preference Share Capital of OMR. 200,000 will be paid on 1st June. (iii) Advance to be received for sale of vehicles OMR. 9,000 in June. (iv) Dividends from investments amounting to OMR. 1,000 are expected to be received in June. (v) Income tax (advance) to be paid in June is OMR. 2,000