Following are the estimated values related to Swifi 2023; January OMR April OMR Маy OMR June OMR February March OMR OMR 520,000 320,000 200,000 300,000 150,000 18,515 18,846 572,000 352,000 220,000 330,000 165,000 21,292 23,250 629,200 387,200 242,000 363,000 181,500 24,486 30,500 Cash sales Credit sales Cash purchases Credit purchases Operating expenses Office Expenses 500,000 300,000 210,000 230,000 80,000 11,250 16,388 470,000 330,000 240,000 240,000 90,000 14,000 16,100 500,000 370,000 220,000 270,000 120,000 16,100 17,850 Selling Expenses a) Period of credit allowed by suppler -2 months. 5% discount is received on each payment by the supplier. b) Credit sales are collected over a three-month period, 15% in the month of sale, 70% in the month following sale and 15% in the second month following sale. c) Cash sales customers are allowed a 10% discount. ) Delay in payments of operating expenses -1 month. • Delay in payments of Office and Selling expenses -2 month. Income tax of OMR 57,500 will be due on 20 June 2023. Pays OMR 5,000 for insurance premiums in January, March, June September and December cach year. Office expenses for each month include deprecation amounting to OMR 1,000. Jant has been ordered and is expected to be received and 50% will be paid in May and lance in July. It will cost OMR 120,000. imated opening balance of cash on 1st March is OMR 25,000. Prepare a cash budget for the months March- June.
Following are the estimated values related to Swifi 2023; January OMR April OMR Маy OMR June OMR February March OMR OMR 520,000 320,000 200,000 300,000 150,000 18,515 18,846 572,000 352,000 220,000 330,000 165,000 21,292 23,250 629,200 387,200 242,000 363,000 181,500 24,486 30,500 Cash sales Credit sales Cash purchases Credit purchases Operating expenses Office Expenses 500,000 300,000 210,000 230,000 80,000 11,250 16,388 470,000 330,000 240,000 240,000 90,000 14,000 16,100 500,000 370,000 220,000 270,000 120,000 16,100 17,850 Selling Expenses a) Period of credit allowed by suppler -2 months. 5% discount is received on each payment by the supplier. b) Credit sales are collected over a three-month period, 15% in the month of sale, 70% in the month following sale and 15% in the second month following sale. c) Cash sales customers are allowed a 10% discount. ) Delay in payments of operating expenses -1 month. • Delay in payments of Office and Selling expenses -2 month. Income tax of OMR 57,500 will be due on 20 June 2023. Pays OMR 5,000 for insurance premiums in January, March, June September and December cach year. Office expenses for each month include deprecation amounting to OMR 1,000. Jant has been ordered and is expected to be received and 50% will be paid in May and lance in July. It will cost OMR 120,000. imated opening balance of cash on 1st March is OMR 25,000. Prepare a cash budget for the months March- June.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION I
Following are the estimated values related to Swift LLC for the purpose of budgeting for the year
2023;
January
ОMR
February
OMR
April
OMR
Мау
OMR
June
OMR
Cash sales
Credit sales
Cash purchases
Credit purchases
Operating expenses
Office Expenses
Selling Expenses
500,000
300,000
210,000
230,000
80,000
11,250
16,388
470,000
330,000
240,000
240,000
90,000
14,000
16,100
March
OMR
500,000
370,000
220,000
270,000
120,000
16,100
17,850
520,000
320,000
200,000
300,000
150,000
18,515
18,846
572,000
352,000
220,000
330,000
165,000
21,292
23,250
629,200
387,200
242,000
363,000
181,500
24,486
30,500
a) Period of credit allowed by suppler -2 months. 5% discount is received on each payment by
the supplier.
b) Credit sales are collected over a three-month period, 15% in the month of sale, 70% in the
month following sale and 15% in the second month following sale.
c) Cash sales customers are allowed a 10% discount.
d) Delay in payments of operating expenses -1 month.
e) Delay in payments of Office and Selling expenses -2 month.
f) Income tax of OMR 57,500 will be due on 20 June 2023.
g) Pays OMR 5,000 for insurance premiums in January, March, June September and December
each year.
h) Office expenses for each month include deprecation amounting to OMR 1,000.
i) Plant has been ordered and is expected to be received and 50% will be paid in May and
balance in July. It will cost OMR 120,000.
i) Estimated opening balance of cash on 1st March is OMR 25,000.
Required:
Prepare a cash budget for the months March- June.
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