The cash balance (including liquid investments) on 31st December 2021 was 4,50,000.
Prepare a cash budget for Jan to April 2022. Also, explain how this cash budget will help the company efficiently manage its funds.
4. Mr. Rose Johin started white Rese Managonout Cerolunsy on 14th famary 2019 with a copital of Rs 50.600000. The comp-ty muintains a kl debt-oquity meio and poys monthly inserest at the rate of 12 per anoum in is ling sorm loans. The eompany provides the finatcial and invetant seniee an clients and churges Ras 5000 per client. The company pays a monity reat of Bs poove, ast esc monthly salary so the employee is fuid in the fint weck of act mom Oher vanable costs ars 500 of service tevemut and paid in the same moneth The fixed overhcads are Ru 1,000 por disut calculatid for the normal capacity of 100 clicats. The company collects son, of service monac in Ace mand of sorvice, and the remaining 45% in the month after service, 54 of the novenoe becumes bud debt. Further, on ist Juse 2021, the ocengary punctused the res compoters at the rate of Rs 50,000 each and payalke in equal ien intullinen at the ent of each inonath without incerest. If the company gets the cloving cauh whese Rs 200000 , then the exied caah of the month will be invested in the liguid schemes of matal fondv in the firit weck of next month. These investments are eapected se ear a lutart of "th" per anmum, and ean be converied itho each as and when reguirol. The retarn an the mutual fimals will be cedinod at the ent of each numbth. The company maintain a miniman cash halunce of ks 1.000000 and beerows money (in the nearest denconinatios of Rs 1000 from the hush at the rnte of the per ansm so cener a shortage. The shart 4 erm lous with ieterest will be nefinded befoee. invohing the moncy in matral funde when the comb ballase is mure than Ris 2,00,000 Back ACFrOgB_qJOrMWmqeltN... The coengany jrevides the financial and investment service so elients and charses Rs. 5000 per client. The eompuny pays a monthy rent of 1t,30.000, and the monithly alary to the criployos as 10 is of the serviee revemue carnad during the movith. The salary af the cmployce is paid in the first weck of neat month. Ortwer wariable costs ane 90 Fo of service revcnoe and poid in the same month. The fised everheads are Rs 1,000 per clicent calculated fer the noemal capacity of 100 clicnts. The compuny collects soth of service fovare = the month of service, and the vcraining 45% is the macht after service, 5% of the reveroe becumes bad debe. Further, ea Ist June 2021, the coergany perchased the twe ecmputers at the rate of Rs 50.000 cach and pryable in sqaal len installments at ithe ond of cach moeth withod interent. If the company gots the closing cash above lis 2 mo. oxe, thon the ewoess caih of the tmoth will be iavested in the liguid schemes of matal fents in the first wock of nest moieth. These invesuments ate eqpected lo ears a tetarn ed sol per annum, and can be converted inte cash as and ahen requiect. The fcharn ce the mutual fumbs will be credited at the cond of each monh. The eodipany mainaaias a miniman caib halance of Res 1 m. oed and bornows money (in the ncarest demrminution of Rs 1000) frum the bork at the nate of 12 P per anum 2 to eover a shortage. The ahoet-term hess with intercst will be refiaded before imvesting the moncy in mutual funds whet the cash bulance is move than Rs 2.00.000 The company plans 10 pay ast Rs10,00,000 of tas loegterm lean in March 2022. The sash balance (including liguid investment) eo 3 lst Docember 3021 was 4.50.000. Fropare a cash tradget for Jan to Agoil 20g2. Alse, coplain how this exh budgst will help the company efficiently manage its funds
