Prepare A Projected Cash Budget Statement for the period January to June 2012

QUESTION ONE Jogena Company Ltd. is being considered by Adwen Na Nsa Community Bank for a credit facility to enable the company add on to its current line of business. As a pre-requisite the company needs to provide a projected cash budget statement for the period January 2012 to June 2012. The information below is provided. Projected Sales Are As Follows: Month Sales (GHC'000) November 2011 150 December 2011 160 January 2012 180 February 2012 195 March 2012 210 April 2012 220 May 2012 250 June 2012 280 July 2012 280 Of the company's sales 40% are for cash and 60% are on credit. Out of the credit sales 50% is paid in the month immediately after the sales and the other half is paid in the second month after the sales. Staff remunerations for a particular month are 45% of the previous month's gross sales figure. These are paid for in cash and in the month which they relate to. Material costs are 20% of the relative month's sales. Total Non-Current Assets at cost is ghc 200.0M with expected life span of 20 years. The company has renovated some extra space at the factory which it rents out at ghc200,000 monthly, although it continues to pay its landlord at the same old rate of ghc150,000 per month. The Rent income is received 2 months in arrears. Other overhead expenses are ghc20,000 monthly. Advance Corporate Tax of GHC48,000 and interim dividends of ghC66,000 will be respectively paid in March And April 2012. Cash at the end of December 2011 Is GHC100,000 and the monthly minimum cash balance is ghc300,000 33