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PLEASE DO STEP BY STEP WITH CLARIFICATION DON'T DO WITH SHORTCUTS.THANK YOU P13. K&T Company in its process of preparing a master buaget nias guu.com

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PLEASE DO STEP BY STEP WITH CLARIFICATION DON'T DO WITH SHORTCUTS.THANK YOU

P13. K&T Company in its process of preparing a master buaget nias guu.com Beginning balance from the last year Schedule !!: Forecasted sales Schedule 1 Rs. 200,000 Computing machine Rs. 50,000 Baisakh Rs. 300,000 Merchandise inventory Rs. 120,000 Jestha Rs.150,000 Account receivable(50% of Chaitra sales) Ashad Rs. 300,000 Rs. 20,000 Cash at bank Shrawan Rs. 200,000 Accounts payable(Chaitra purchase) Rs. 20,000 Schedule III: Merchandise purchase budget 57 Baisakh Rs. 180,000 Jestha Rs. 180,000 Ashad Rs. 120,000 The gross profit margin in sales will be 40% of merchandise sales. Administrative and selling and distribution expenses will be 20% of sales revenue of the month. Sales are all credit sales; merchandise purchase will be paid in the following months of purchase. All other expenses will be paid in the month when they will be due. The company has intended to purchase additional unit of computing machine ata cost of Rs. 80,000 in the month of Baishak. The minimum cash balance required for the months under review will be Rs. 20,000. Merchandise inventory at the end of Ashad will be has an agreement with Nepal Bank Ltd. for a temporary loan to meet cash deficiency of any months at a interest rate of 12% p.a. payable for the amount of loan repaid. The borrowing will be in a multiple of Rs. 5,000 and payment in a multiple of Rs. 1,000. Required: (a) Budgeted income statement for three months ending Ashad. (b) Cash collection and disbursement budget for three months. (c) Budgeted balance sheet at the end of Ashad. [Ans: NI= Rs.160,000 b. Cash Balance Baishak Rs.30,000; Jestha Rs.40,000; Ashaar 1,20,000. The company

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