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MB0045 : Given the following information, prepare a cash budget:

Posted on: October 18, 2011

MB0045 : Given the following information, prepare a cash budget:
 

Month Sales Purchases Wages Production overheads Selling overheads
Jan 100000 40000 10000 6000 6000
Feb 120000 45000 15000 6500 6500
March 150000 35000 18000 7000 6600
April 160000 30000 20000 7700 6800
May 175000 25000 22000 8000 6200
June 200000 20000 24000 8500 6300

 

The company has a policy of selling its goods at 50% cash and the balance on credit. On credit sales, 50% is paid in the following month and balance 50% two months from the sale. Purchases are paid one month from the month of purchase. Wages are paid in the following month and overheads are also paid in the following month. The company plans a capital expenditure, in the month of April, for Rs. 25,000.

The company has a opening balance of cash of Rs. 40,000 on 1st Jan 2010. Prepare a cash budget for Jan to June.

Solution: 

Cash Budget

 

Jan

Feb

March

April

May

June

Opening Cash Balance

40000

90000

113000

170000

225900

326400

Cash Receipts:
Cash Sales

50000

60000

75000

80000

87500

100000

Credit Sales

25000

30000

37500

40000

43750

25000

30000

37500

40000

Total Cash available

90000

175000

243000

317500

390900

510150

Cash Payments:
Materials

40000

45000

35000

30000

25000

Wages

10000

15000

18000

20000

22000

Production overheads

6000

6500

7000

7700

8000

Selling overheads

6000

6500

6600

6800

6200

Capital Expenditure

25000

Total cash payments

0

62000

73000

91600

64500

61200

Closing cash balances

90000

113000

170000

225900

326400

448950

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3 Responses to "MB0045 : Given the following information, prepare a cash budget:"

The above questions are not same as the Winter assignment questions no? OR do I have the wrong paper with me?

those are nov batch second sem questions.

thanx a lot yaar.. u have saved me..call me on 9844989156 i have to speak to you

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