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Research Driven Activity:Question 4(Flexible Budget) Saurashtra Co. Ltd. wishes to arrange overdraft facilities with its bankers from the period August to October 2010 when it
Research Driven Activity:Question 4(Flexible Budget) Saurashtra Co. Ltd. wishes to arrange overdraft facilities with its bankers from the period August to October 2010 when it will be manufacturing mostly for stock. Prepare a cash budget for the above period from the following data given below: Additional Information: (a) Cash on hand 1-08-2010 Rs.25,000. (b) 50% of credit sales are realized in the month following the sale and the remaining 50% in the second month following. Creditors are paid in the month following the month of purchase. (c) Lag in payment of manufacturing expenses one month. (d) Lag in payment of other expenses one month
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