Prepare a cash budget for the period october to december

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From the following particulars, prepare a cash budget for the period October to December 2009, indicating the extent of the bank facilities the company will require at the end of each month:

Month

Sales Rs.

Purchases Rs.

Wages Rs.

August

80,000

62,400

6,000

September

1,00,000

75,000

7,000

October

55,000

1,20,000

5,000

November

90,000

1,25,000

5,000

December

65,000

1,34,000

10,000

Additional information:

  1. 50% of credit sales are realized in the month following the sales and the remaining 50% in the second month following.
  2. Creditors are paid in the month following the month of purchase.
  3. Cash as bank on 1 October 2009 (estimated) Rs.12,500.

Reference no: EM13516521

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