August (actual) September (actual) October (forecast) November (forecast) December (forecast) January(forecast) February (forecast) March (forecast) April (forecast) GHC 000 400,000 500,000 600,000 700,000 800,000 800,000 700,000 600,000 500,000. B. 25% of the grants are collected during the month of the grant, 50o ase collected in the month following the grant, and 25% ate collected on the second month following the grant. Payment of Local Purchase Order is issued to Afran Ltd. for supply of for C. cement and iron rods. The purchases are 50% of the capital grant and are paid by one month prior to the capital grant. Wages and salaries are 24% of the capital grants and are paid in the D. same month as the capital grant. E. SSF contribution of GHC 4.000.000 is paid each month. Additionally. Maintenance of Motor Vehicles costs of GHC 8,000,000 per month will be incurred for October and November, GHC 20,000,000 for December and January; and GHC 8,000,000 for February and March. F. Training and development expenses of GHC 10,000,000 each are expected to be paid in October and January. A capital expenditure of GHC 100,000,000 will occur in October and the Ministry has a Mortgage payment of GHC 5.000,000 due each of the six months. G. The cash balance at the end of September is GHC 125, 000,000 and the Ministry wants to maintain a minimum balance of GHC 60,000,000 at all times. The Ministry will borrow the amounts necessary to ensure that the minimum balance is achieved. If the cash balance is above the minimum and there is still a loan balance from the previous months, excess funds will be applied to the loan balance until it is eliminated.
August (actual) September (actual) October (forecast) November (forecast) December (forecast) January(forecast) February (forecast) March (forecast) April (forecast) GHC 000 400,000 500,000 600,000 700,000 800,000 800,000 700,000 600,000 500,000. B. 25% of the grants are collected during the month of the grant, 50o ase collected in the month following the grant, and 25% ate collected on the second month following the grant. Payment of Local Purchase Order is issued to Afran Ltd. for supply of for C. cement and iron rods. The purchases are 50% of the capital grant and are paid by one month prior to the capital grant. Wages and salaries are 24% of the capital grants and are paid in the D. same month as the capital grant. E. SSF contribution of GHC 4.000.000 is paid each month. Additionally. Maintenance of Motor Vehicles costs of GHC 8,000,000 per month will be incurred for October and November, GHC 20,000,000 for December and January; and GHC 8,000,000 for February and March. F. Training and development expenses of GHC 10,000,000 each are expected to be paid in October and January. A capital expenditure of GHC 100,000,000 will occur in October and the Ministry has a Mortgage payment of GHC 5.000,000 due each of the six months. G. The cash balance at the end of September is GHC 125, 000,000 and the Ministry wants to maintain a minimum balance of GHC 60,000,000 at all times. The Ministry will borrow the amounts necessary to ensure that the minimum balance is achieved. If the cash balance is above the minimum and there is still a loan balance from the previous months, excess funds will be applied to the loan balance until it is eliminated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a cash budget for the ministry for six months period ending 31st March
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