Merlin Corporation is a private Company came into existence in the year 2019. The Corporation has...
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Merlin Corporation is a private Company came into existence in the year 2019. The Corporation has received its certificate of trading and intends start trading in the year 2020. The Management has forecasted the following for the first half of the year 2020. 1) On January 1 2020 Share capital raised and deposited in the company's bank account amounted to Sh.250, 000/=. 2) During the month of January they purchased the following and paid by cash Premises Fixtures 200,000/= 30,000/= 10,000/= Motor vehicles 3) The Company has employed 2 staff and pays them a salary of 13000/=each at end of each month 4) The forecasted purchases are as below January 2000 February March 2200 2800 Units The units will cost 60/= each from January to April and after they will cost 70/=each. All purchases will be on credit and credit period is one month April May 3500 4000 5) The forecasted sales units are also given below January February March April 1200 1800 2400 May 3000 3900 June 3300 June Units 4200 Units will be sold at 100/= each and 1/3 of sales will be will be cash and 2/3 on credit the credit period will be for two months. 6) Stock valuation is on FIFO basis 7) Other expenses will be 15,000 per month payable one month in arrear 8) Part of premises will be sublet at a rent of 60,000/= per month paid quarterly in arrears. 9) The director has to support his family, and his drawings per month is 25,000/= 10)Depreciation; Fixtures is 10% per annum Motor vehicles is 20% p.a Required Prepare a cash budget for the six months ending June 2020. Budgeted Income Statement and Budgeted Statement of Financial I Position on at the same date. Merlin Corporation is a private Company came into existence in the year 2019. The Corporation has received its certificate of trading and intends start trading in the year 2020. The Management has forecasted the following for the first half of the year 2020. 1) On January 1 2020 Share capital raised and deposited in the company's bank account amounted to Sh.250, 000/=. 2) During the month of January they purchased the following and paid by cash Premises Fixtures 200,000/= 30,000/= 10,000/= Motor vehicles 3) The Company has employed 2 staff and pays them a salary of 13000/=each at end of each month 4) The forecasted purchases are as below January 2000 February March 2200 2800 Units The units will cost 60/= each from January to April and after they will cost 70/=each. All purchases will be on credit and credit period is one month April May 3500 4000 5) The forecasted sales units are also given below January February March April 1200 1800 2400 May 3000 3900 June 3300 June Units 4200 Units will be sold at 100/= each and 1/3 of sales will be will be cash and 2/3 on credit the credit period will be for two months. 6) Stock valuation is on FIFO basis 7) Other expenses will be 15,000 per month payable one month in arrear 8) Part of premises will be sublet at a rent of 60,000/= per month paid quarterly in arrears. 9) The director has to support his family, and his drawings per month is 25,000/= 10)Depreciation; Fixtures is 10% per annum Motor vehicles is 20% p.a Required Prepare a cash budget for the six months ending June 2020. Budgeted Income Statement and Budgeted Statement of Financial I Position on at the same date.
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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