Question $1$

From the following information prepare a monthly cash budget for the three months ending

$31$st Dec. $2023$

Credit terms

Sales $-3$ months to debtors. $20\%$ of sales are on cash. On an average, $50\%$ of credit

sales are paid on the due dates while the other $50\%$ are paid in the month following

Creditors for material $-2$ months.

Lag in payment

Wages. $\frac{1}{4}$ month, overheads $-\frac{1}{2}$ month.

Other information

Plant and Machinery to be installed in Aug. at a cost of RM$150,000.$ It will be paid for

by monthly installments of RM$6,000$ each from $1$st Oct.;

Preference share dividend $($a$)5\%$ on RM$280,000$ are to be paid on $1$st Dec.

Calls on $4,000$ equity shares $($a$)$ RM$4$ per share expected on $1$st November;

Dividends from investments amounting to RM$7,500$ are expected on $31$st Dec.;

Income tax $($advance$)$ to be paid in December RM $5,000$

Cash and Bank Balance on $1$st Oct. expected RM$18,000.$

Required:

Prepare cash budget for $3$ months period ending ${31}^{st}$ December $2023$ in detail with

appropriate workings.