Prepare a Cash Budget Q 1. From the information below, prepare a cash budget for a company for April, May, and June 2021 in a columnar form. Month Sales Purchases Wages Exp. Jan. (actual) 100,000 69,300 Feb. (actual) 105,000 72,000 Mar. (actual) 118,000 85,000 Apr. Budget 130,000 89,000 May Budget 141,750 94,450 24,750 7,000 25,000 8,000 28,700 8,500 30,000 10,000 33,850 10,000 Jun. Budget 149,900 101,350 You are further informed that: 36,000 11,000 . 40% of purchases and 15% of sales are for cash. . The average collection period of the company is 35% in next month, 50% in the second month and 30% credit purchases are paid off after one month; 30% in the second month. Wages are paid half this month, rest the next and the rent of $1050, excluded in expense, is paid monthly. . You are to purchase a machinery for 25,000/- in the month of Jun to increase your capacities. Cash and bank balance on April was $45,000, and the company aims to keep cash at minimum 15,000/- at the end of every month. Any excess is placed in fixed deposits; any shortfalls are borrowed by the company . In the case of borrowing, for the month borrowed, the company pays 1% per month on outstanding or min. $ 150/- whichever is higher

Prepare a Cash Budget Q1. From the information below, prepare a cash budget for a company for April, May, and June 2021 in a columnar form. You are further informed that: .40% of purchases and 15% of sales are for cash. - The average collection period of the company is 35% in next month, 50% in the second month and 30% credit purchases are paid off after one month; 30% in the second month. - Wages are paid half this month, rest the next and the rent of $1050, excluded in expense, is paid monthly. - You are to purchase a machinery for 25,000/ - in the month of Jun to increase your capacities. - Cash and bank balance on April I was $45,000, and the company aims to keep cash at minimum 15,000/ at the end of every month. Any excess is placed in fixed deposits; any shortfalls are borrowed by the company - In the case of borrowing, for the month borrowed, the company pays 1% per month on outstanding or min, $ 150% - whichever is higher