Prasad & Co. wishes to prepare cash budget from January. Prepare a cash budget for the first six months from the following estimated revenue and expenses: Month Total Sales Materials Wages Production Selling and Distribution OMR. OMR. OMR. Overheads OMR. Overheads OMR. January February March April May June Additional Information 1. Cash balance on 1st January was OMR. 5,000. A new machinery is to be installed at OMR. 10,000 on credit, to be repaid by two equal installments in March and April. 2. Sales commission @ 5 % on total sales is to be paid within a month of following actual sales. 3. OMR. 5,000 being the amount of 2nd call may be received in March. Share Premium amounting to OMR. 1,000 is also obtainable with the 2nd callI. 4. Period of credit allowed by suppliers - 2 months. 5. Period of credit allowed to customers - 1 month. 6. Delay in payment of overheads - 1 month. 7. Delay in payment of wages -l month. 8. Assume cash sales to be 50 % of total sales. 10,000 10,000 7,000 2,000 2,200 2,300 2,300 2,000 1,600 1,650 400 11,000 14,000 15,000 450 7,000 11,000 10,000 12,500 1,700 450 1,750 500 15,000 20,000 1,600 450 2,500 1,500 600

Prasad & Co. wishes to prepare cash budget from January. Prepare a cash budget for the first six months from the following estimated revenue and expenses: Month Total Sales Materials Wages Production Selling and Distribution OMR. OMR. OMR. Overheads OMR. Overheads OMR. January February March April May June Additional Information 1. Cash balance on 1st January was OMR. 5,000. A new machinery is to be installed at OMR. 10,000 on credit, to be repaid by two equal installments in March and April. 2. Sales commission @ 5 % on total sales is to be paid within a month of following actual sales. 3. OMR. 5,000 being the amount of 2nd call may be received in March. Share Premium amounting to OMR. 1,000 is also obtainable with the 2nd callI. 4. Period of credit allowed by suppliers - 2 months. 5. Period of credit allowed to customers - 1 month. 6. Delay in payment of overheads - 1 month. 7. Delay in payment of wages -l month. 8. Assume cash sales to be 50 % of total sales. 10,000 10,000 7,000 2,000 2,200 2,300 2,300 2,000 1,600 1,650 400 11,000 14,000 15,000 450 7,000 11,000 10,000 12,500 1,700 450 1,750 500 15,000 20,000 1,600 450 2,500 1,500 600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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