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Amount 3.1 BUSSO P16. The opening balance sheet and other information ne manufacturing company have been summarized below 63. Liabilities Amount Rs. Equity capita Retained earring Accounts payable Finished goods 22.000 20.000 26.000 25.000 4.000 4500 Sales revenue Balance sheet on Jan 1, 2006 Assets 100.000 plant and machinery 21.000 Inventory 22,000 Raw material 1,000 units 2500 units Accounts receivable Cash a bank 143.000 Sales and Production Budget Particulars, Months NOV. Dec. Jan. Feb. March April Sales unit 3,000 5.000 6,000 6.000 30,000 40.000 50,000 60,000 60,000 40.000 Production budget units 5,500 6.000 5.000 Sales would be on credit. Credit sales would realize 50% in the month of sales, 30% in the next montes 18% in the following next month of sales. Bad debis would be 2% of sales. The inventory of finishe goods and raw materials would be 50% of sales need of the next month and the material need production of the next month respectively. Minimum need of cash balance would be Rs. 25,000. Purchase would be paid in the next month and othe expenses would be paid in the same month when they become due. Each unit of finished product would need two units of materials and material would cost Rs. 2 per at Labour cost per unit of output produced would be Rs. 3 and Fixed manufacturing overhead exdiada depreciation of would be Rs. 2,000. Variable manufacturing overhead would be Rs. 1 per unit of ou produced. The company would purchase additional plant worth of Rs. 50,000 on Jan 1* 2006. Short term loan in a multiple of Rs. 5,000 would be available at an interest rate of 18% pa. to meet deficiency. Repayments of bank loan would be in a multiple of Rs. 1,000. Required: a) Material purchase budget b) Cash collection and disbursement budget c) Budgeted balance sheet on 31 March [As a Parchase is Rs. 22.206,20,000-15,000, L. Cash Balance las Rs.28,400; Feb Rs 25,396; March Rs.23,670; b. NIST = Rs.23:2701 Total = Rs.196