Illustration 10. Alcobex Metal Company (AMC) does business in three products P1, P2 and P3. Products P1 and P2 are manufactured in the company, while product P3 is procured from outside and resold as a combination with either product P1 or P2. The sales volume budgeted for the three products for the year 2009-2010 (April-March) are as under: Products Rs.in lakhs P1 1,200 P2 500 P3 400 a54 Based on the budgeted sales value, the cash flow forecast for the company is prepared based on the following assumptions: (1) Sales realisation is considered at: 50% Current month 25% Second month 25% Third month (2) Production Programme for each month is based on the sales value of the next month. (3) Raw material consumption of the company is kept at 59% of the month's production. (4) 81% of the raw materials consumed are components. (5) Raw material and components to the extent, at 25% are procured through import. (6) The Purchases budget is as follows: (1) Indigenous raw materials are purchased two months before the actual consumption (ii) Components are procured in the month of consumption. (iii) Imported raw materials and components are brought three months prior to the month of consumption (7) The company avails of the following credit terms from suppliers: (1) Raw materials are paid for in the month of purchases; (ii) Company gets one month's credit for its components, (iii) For imported raw material and components payments are made one month prior to the dates of purchases. (8) Currently the company has a cash credit facility of Rs. 140.88 lakhs (9) Expenses are given below and are expected to be constant throughout the year: Wages and Salaries Rs. 312 lakhs Administrative Expenses Rs. 322 lakhs Selling and Distribution Expenses Rs. 53 lakhs (10) Dividend of Rs. 58.03 lakhs is to be paid in October. (11) Tax of Rs. 23.92 lakhs will be paid in equal installments in four-quarters ie., January, April, July and October. (12) The term-loan of Rs. 23732 lakhs is repayable in two equal installments half-yearly. i.e June December (13) Capital expenditure of Rs. 292.44 lakhs for the year is expected to be spread equally during the 12 months period. You are required to prepare a Cash Flow Statement (Cash Budget) for the period of June-November, 2010