Question
From the following information prepare a monthly cash budget for the three months ending
st Dec.
Credit terms
Sales months to debtors. of sales are on cash. On an average, of credit
sales are paid on the due dates while the other are paid in the month following
Creditors for material months.
Lag in payment
Wages. month, overheads month.
Other information
Plant and Machinery to be installed in Aug. at a cost of RM It will be paid for
by monthly installments of RM each from st Oct.;
Preference share dividend @ on RM are to be paid on st Dec.
Calls on equity shares @ RM per share expected on st November;
Dividends from investments amounting to RM are expected on st Dec.;
Income tax advance to be paid in December RM
Cash and Bank Balance on st Oct. expected RM
Required:
Prepare cash budget for months period ending December in detail with
appropriate workings.help
