Based on the following information prepare a cash budget for ABC Ltd. 1st Quarter Rs. 10,000...

 

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Based on the following information prepare a cash budget for ABC Ltd. 1st Quarter Rs. 10,000 Rs.1,25,000 Rs.1,50,000 Rs.1,60,000 Rs.2,21,000 Opening cash balance Collection from customers Payments: Purchase of materials Other expenses Salary and wages Income tax Purchase of Machinery 20,000 25,000 90,000 2nd Quarter 3rd Quarter 4th Quarter 35,000 20,000 95,000 35,000 20,000 95,000 54,200 17,000 1,09,200 20,000 The company desires to maintain a cash balance of Rs.15,000 at the end of the each quarter. Cash can be borrowed or repaid in multiples of Rs.500 at an interest of 10% per annum. Management does not want to borrow cash more then what is necessary and wants repay as early as possible. In any event, loans cannot be extended beyond four quarters. Interest is computed and paid when repayment is made at the end of the quarter. Based on the following information prepare a cash budget for ABC Ltd. 1st Quarter Rs. 10,000 Rs.1,25,000 Rs.1,50,000 Rs.1,60,000 Rs.2,21,000 Opening cash balance Collection from customers Payments: Purchase of materials Other expenses Salary and wages Income tax Purchase of Machinery 20,000 25,000 90,000 2nd Quarter 3rd Quarter 4th Quarter 35,000 20,000 95,000 35,000 20,000 95,000 54,200 17,000 1,09,200 20,000 The company desires to maintain a cash balance of Rs.15,000 at the end of the each quarter. Cash can be borrowed or repaid in multiples of Rs.500 at an interest of 10% per annum. Management does not want to borrow cash more then what is necessary and wants repay as early as possible. In any event, loans cannot be extended beyond four quarters. Interest is computed and paid when repayment is made at the end of the quarter.