ASSIGNMENT 5 CASH BUDGET (10 MARKS) 2 Ouarter Sh. Based on the following information prepare a cash budget for ABC Ltd 74 3rd Quarter Quarter Quarter SA SA Sh. Opening cash balance 10,000 Collection from customers 125,000 150,000 160,000 Payments: Purchase of materials 20,000 35,000 35,000 Other expenses 25,000 20,000 20,000 Salaries and wages 90,000 95,000 95,000 Income tax 5,000 Purchase of machinery 221,000 54,200 17,000 109.200 20.000 The company desires to maintain a cash balance of Sh 15,000 at the end of each quarter. Cash can be borrowed or repaid in multiples of Sh.500 at an interest of 10% per annum Management does not want to borrow cash more than what is necessary and wants to repay as early as possible. In any event, loans cannot be extended beyond four quarters. Interest is computed and paid when the principal is paid. Assume that borrowings take place at the beginning and repayments are made at the end of the quarters