Q.2. Spar Co. is expecting to have Rs. 47,000 cash in hand on 1st April, and requires you to prepare an estimate of cash position during the three months. April, May and June the following information is supplied to you: Month Feb March April May June Sales Rs. Purchases Rs. 65,000 55,000 85,000 40,000 90,000 50,000 110,000 65,000 125,000 40,000 Wages Rs. 10,000 8,000 12,000 13,000 14,000 FOH Rs. Office Exps Selling Exps. Rs. Rs. 13,000 5,000 5,700 13,000 6,500 5,700 13,000 6,500 5,700 13,000 6,500 5,700 13,000 6,500 5,700 Other Information: (i) Period of credit allowed suppliers 2 months. (ii) 20% of sales for cash and period of credit allowed to customers for credit is one month. (iii) Delay in payment of all expenses:1 month. (iv) Income tax of Rs. 57,500 is due to be paid on June 15th. (v) The company is to pay dividend to shareholders and bonus to workers of Rs.15,000 and Rs. 22,500 respectively in the month of April. (vi) A plant has been ordered to be received and paid in May. It will cost Rs. 1,20,000. (8 Marks)