February...3,000

March.... 2,000

April......3,500

May...4,000

June...2,550

July....2,850

**The selling price of the wallet is 1,200 BDT/per unit**

Goal: you are required to prepare a master budget covering the following heads for a startup company (hypothetical/actual). 1. Sales budget 2. Schedule of expected cash collection 3. Production budget/purchase budget 4. Direct materials budget 5. Schedule of cash disbursement 6. Direct labor budget 7. Manufacturing overhead budget 8. Selling and administrative expense budget 9. Ending inventory budget (if required) 10. Cash budget Time span: You will prepare a cash budget covering any three months and you will show the total for the particular quarter. Assumption: i. You must have both in cash and on account sales. Collection of account receivables should follow three months rotation and put your total percentage in all three months rationally. To have this policy in enforce, keep sufficient accounts receivable in earlier months. ii. Purchase payment will be made in three months as well. Put your payment over three months rationally. To have this policy in enforce, keep sufficient accounts payable in earlier months. iii. Additional conditions: You will create the situation where the company will borrow/organize a line of credit to show the context of taking and repaying loans with interest. Rate of interest can be variable. iv. Non-cash expenses: You must show the non-cash items such as depreciation/amortization etc. when you create your manufacturing overhead budget/Selling and Administrative expense budget. v. Additional years/quarter data: You can keep additional sales (in unit/amounts) and additional raw materials to create/manage ending inventory/raw materials to prepare your current quarter budget. vi. Record some purchase of equipment, land and building in the first and second month respectively. vii. Record dividend payment in the second month. viii. Put a minimum cash balance policy for the company and open a line of credit with the financing company to borrow from them. ix. Create a situation in the first and second month for deficit and then borrow money from sources to meet minimum cash balance.