Prepare a cash budget showing estimated cash positon at the start of the month for the first six
months of the year using a suitable format and appRialspriate formulaes .

Kasim is planning on starting his business on 1^st January 2011.

His forecast sales and purchases during the first six months of trading are

Month	January	February	March	April	May	June
Purchases	40000	80000	90000	90000	90000	120000
Sales	80000	50000	200000	70000	90000	180000

Additional information:
1. Kasims capital to start his business is Rials. 200,000
2. 70% of all purchases are on cash and the balance on credit .
The supplier is to be paid after one month.
3. 30% of the sales are on cash & balance are on credit. Customers pay after one month .
4. A equipment costing Rials 10000 is purchased in January and 10 % installment is to be paid every month starting January.
5. Salaries paid in January will be Rials. 4000 .
Salaries will increase every month by 15%.
6.General expenses in January should be Rials 1000 with an increase of 10% in Feb and March
and 20% in the other months.
7. Income from Commission of Rials 14000 is expected in the month of February to paid off in
four equal installments fRialsm March .