Q 3. Prepare the cash budget of the company from January to June based on the following (15) information.(Rs.in lakh) Production Overheads 6.000 Month January February March April May June Sales 72.000 97,000 86,000 88,600 102,500 108,700 Material Purchases 25,000 31,000 25,500 30.600 37,000 38,800 Salaries & wages 10,000 12.100 10.600 25.000 22.000 23.000 6,300 6,000 6,500 8,000 8,200 Office & Sedligads 5,500 6.700 7.500 8.900 11,000 11,500 The opening cash balance for the year may be taken as Rs.72,500 lakh.50 percent of sales can be assumed as credit salcs. Asscts are to be acquired in the month of February and April. Therefore provisions are to be made for the payment of Rs.8,000 and Rs.25,000 respectively for the same. An application has been Page 2 of 4 made to a bank for the grant of a loan of Rs.30,000 and it is expected that the loan amount will be received in the month of May. There is a dividend payment liability of Rs.35,000 in the month of June. The debtors are allowed one month credit. The creditors for material purchases and overheads can be paid after one month from the date of purchase /incurring the expenditure. A commission of 3% of sales is paid to the salesmen on a monthly basis