Question: Prepare cash budget for the months of Jan to April 2023.

Months Sales Purchases Wages Manufacturing Expenses Administration expenses Selling expenses

Nov 2022 30,000 15,000 3000 250 1060 500

December 35,000 20,000 3200 1225 1040 550

Jan 2023 25,000 15,000 2500 990 1100 600

February 30,000 20,000 3000 1050 1150 620

March 35,000 22,500 2400 1100 1220 570

April 40,000 25,000 2600 1200 1180 710

Additional Information:

1. Customers are allowed a credit period of 2 months.

2. A dividend of $10000 is payable in April.

3. Plant purchased on 15th Jan for $5000 and a building purchased on 1st March & payments are made in monthly instalments $2000 each and paid in the month of march & April $2000 each.

4. Creditors are allowed a credit of 2 months.

5. Wages are paid on the 1st of the next month.

6. Lag in payment of expenses is 1 month.

7. Balance of cash in hand on 1st Jan is $15000