HASF & Company Ltd. Planning its cash needs for the month October November and December. the following information has been assembled to assist in preparing a cash budget for these month.

Months Sales Rs. Materials Rs. Wages Rs. Overheads Rs.

August 20,000 10,200 3,800 1,900

September 21,000 10,000 3,800 2,100

October 23,000 9,800 4,000 2,300

November 25,000 10,000 4,200 2,400

December 30,000 10,800 4,500 2,500

a)10% sales are on cash basis, 50% of the credit sales are collected next month and the balance in the following month:

CreditorsMaterials after 2 months

Wages 40% in the same month & 60% in next month

Overheads in same month and in next month

b)Cash balance on 1^st October, 2019 is expected to be Rs. 25,000.

c)A machinery will be installed in August, 2019 at a cost of Rs. 100,000. The monthly installment of Rs. 5,000 is payable from October onwards.

d)Dividend on preference share capital of Rs. 30,000 will be paid on 1^st December, 2019.

e)Advance to be received for sale of vehicle Rs. 20,000 in December.

f)Income-tax (advance) to be paid in December Rs. 5,000.

g)Minimum Balance required Rs. 25,000.

Required

1.Prepare a cash budget for the month of October November and December as well as in total for the quarter

2. If the company needs a minimum cash balance of 25,000 to start each month can the loan be repaid?