Prasad & Co. wishes to prepare cash budget from January. Prepare a cash budget for the...

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Prasad & Co. wishes to prepare cash budget from January. Prepare a cash budget for the first six months from the following estimated revenue and expenses: Month Materials Wages OMR. OMR. January February March April May June Total Sales OMR. 10,000 11,000 14,000 15,000 15,000 20,000 10,000 7,000 7,000 11,000 10,000 12,500 2,000 2,200 2,300 6. Delay in payment of overheads - 1 month. 7. Delay in payment of wages -I month. 8. Assume cash sales to be 50 % of total sales. 2,300 2,000 2,500 Production Overheads OMR. 1,600 1,650 1,700 1,750 1,600 1,500 Selling and Distribution Overheads OMR. 400 450 450 500 450 600 Additional Information 1. Cash balance on 1st January was OMR. 5,000. A new machinery is to be installed at OMR. 10,000 on credit, to be repaid by two equal installments in March and April. 2. Sales commission @ 5% on total sales is to be paid within a month of following actual sales. 3. OMR. 5,000 being the amount of 2nd call may be received in March. Share Premium amounting to OMR. 1,000 is also obtainable with the 2nd call. 4. Period of credit allowed by suppliers - 2 months. 5. Period of credit allowed to customers - 1 month. Prasad & Co. wishes to prepare cash budget from January. Prepare a cash budget for the first six months from the following estimated revenue and expenses: Month Materials Wages OMR. OMR. January February March April May June Total Sales OMR. 10,000 11,000 14,000 15,000 15,000 20,000 10,000 7,000 7,000 11,000 10,000 12,500 2,000 2,200 2,300 6. Delay in payment of overheads - 1 month. 7. Delay in payment of wages -I month. 8. Assume cash sales to be 50 % of total sales. 2,300 2,000 2,500 Production Overheads OMR. 1,600 1,650 1,700 1,750 1,600 1,500 Selling and Distribution Overheads OMR. 400 450 450 500 450 600 Additional Information 1. Cash balance on 1st January was OMR. 5,000. A new machinery is to be installed at OMR. 10,000 on credit, to be repaid by two equal installments in March and April. 2. Sales commission @ 5% on total sales is to be paid within a month of following actual sales. 3. OMR. 5,000 being the amount of 2nd call may be received in March. Share Premium amounting to OMR. 1,000 is also obtainable with the 2nd call. 4. Period of credit allowed by suppliers - 2 months. 5. Period of credit allowed to customers - 1 month.

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Cash Budget of Prasand Co Jan June Jan Feb Mar 5000 10000 16000 5000 5000 O ... View the full answer