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Draw up a cash budget for AmBen Ltd showing the balance at the end of each month from the following information for the six months
Draw up a cash budget for AmBen Ltd showing the balance at the end of each month from the following information for the six months ended December a Opening cash balance including bank balance $ b Production in units: April May June July August Sep Oct Nov Dec Jan Feb, c Raw materials used in production cost $ per unit. Of this is paid in the month of production and in the month after production. d Direct labour costs of $ per unit are payable in the month of production. Management of AmBen ltd after negotiation with the workers' union has agreed to an increase in direct labour cost of Payment of the new wage will start from August e Variable expenses are $ per unit, payable onehalf in the same month as production and one half in the month following production. f Sales at $ per unit: Mar Apr May Jun Jul Aug Sep Oct Nov Dec All sales are on credit. Eighty percent of the value of the sales is received in month after sale, two months after sale and three months after sale. The balance is written off as bad debt. g Fixed expenses of $ per month payable each month. h Machinery costing $ to be paid for in October Depreciation on the new machinery is calculated at on cost i Cash from a loan secured on the land and buildings of $ at an interest rate of is due to be received on November j An interim dividend to June will be paid in August of $
Draw up a cash budget for AmBen Ltd showing the balance at the end of each month from the
following information for the six months ended December
a Opening cash balance including bank balance $
b Production in units: April May June July August Sep
Oct Nov Dec Jan Feb,
c Raw materials used in production cost $ per unit. Of this is paid in the month of
production and in the month after production.
d Direct labour costs of $ per unit are payable in the month of production. Management of
AmBen ltd after negotiation with the workers' union has agreed to an increase in direct labour cost
of Payment of the new wage will start from August
e Variable expenses are $ per unit, payable onehalf in the same month as production and one
half in the month following production.
f Sales at $ per unit:
Mar Apr May Jun Jul Aug Sep Oct Nov
Dec
All sales are on credit. Eighty percent of the value of the sales is received in month after sale,
two months after sale and three months after sale. The balance is written off as bad
debt.
g Fixed expenses of $ per month payable each month.
h Machinery costing $ to be paid for in October Depreciation on the new machinery
is calculated at on cost
i Cash from a loan secured on the land and buildings of $ at an interest rate of is
due to be received on November
j An interim dividend to June will be paid in August of $
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