Q.No. 1 ABC company Ltd has given the following particulars. You are required to prepare a cash budget for the three months ending 31" December 2019 (7.5 Marks) Months Sales Materials Wages Over heads (OMR) (OMR) (OMR) (OMR) August 20000 10200 3800 1900 September 21000 10000 3800 2100 October 23000 9800 4000 2300 November 25000 10000 4200 2400 December 30000 10800 4500 2500 Credit terms are 1. Sales Debtors 10% sales are on Cash , 50% of the credit sales are collected in next month and the balance in the following month 2. Creditors - materials 2 months Wages 1 month Over heads - 1 month 3. Cash balance on 1" October is expected to be Ro.8000 4. A machinery will be installed in August at a cost of RO.100000, the monthly instalment of RO.5000 is payable from October onwards 5. Dividend at 10% on preference share capital RO.300,000 will be paid on 19 December 2019 6. Advance to be received for the sale of vehicles RO.20000 in December 7. Income tax tobe received in December RO.5000