Q$4.$ Prepare Cash Budget for month of April for the company:

$1.$ Sales forecasts: Assume the marketing department has developed the following sales forecast for the first quarter of the next year and the selling price of Rs $65$ per unit. Months$-$ April May June July Budgeted sales $-22,00020,00018,00021,000$

$2.$ The management desires closing inventory to equal $30$ per cent of the following month's sales. The closing inventory for the month of March was $4000$ units.

$3.$ The manufacturing costs are as followsDirect material per unit $18$Direct labour per unit $4$Variable overhead per unit $10$Total fixed overheads $($per annum$)$ Rs $480,000$ this includes total depreciation ofRs $1,20,000.$

$4.$ For raw material company maintains closing inventory to equal $30$ per cent of the following month's sales.

$5.$ The closing inventory for the month of March was $3600$ units.Each unit of raw material cost Rs $18\mathrm{.}5.$ Assume fixed selling and administrative expenses are Rs $40,000$ per month and variable selling and administrative expenses are Rs $6$ per unit sold.

$6.$ All sales are on account. In the past, $40$ per cent of the sales were collected during the month of sale and $40$ per cent are collected during the following month. And balance $20\%$ are collected in the third month.

$7.$ The sales of January, February and March were $15000$ units, $20,000$ units and $13000$ units respectively. Selling price per unit was Rs $65$ per unit Additional information: Opening Balance of Cash is Rs $2,00,000$

b$.$ All purchases are on account. Two$-$thirds are paid for in the month of purchase and one$-$third, in the following month. Total Purchases for month or Mard were Redo $60,000$ units @ Rs $18.$

c$.$ Labors are paid with lag of $15$ days. Total Labor expenses for March were Rs $35000.$

d$.$ All other expenses were paid in the same month only.