Question: solve it in a tabular form Question - 19 Smart Ltd has prepared a forecast for the quarter ending 31.12.2009, which is based on the
Question - 19 Smart Ltd has prepared a forecast for the quarter ending 31.12.2009, which is based on the following projections: (i) Sales for the period October 2000 ... Wery wary 2010 has been projected as under: Cash sale is 20% of the total sales. The company earns a gross profit at 20% of sales. It intends to increase prices the gross profit percentage is projected to there would be no corresponding increase in purchase incorporated in the above figures. (ii) All debtors are allowed 45 days credit and are expected to settle promptly. (iii) Smart Limited follows a policy of maintaining stocks equal to projected sale of the next month. (iv) All credifors are paid in the month following delivery 10%96 all purchases are cash purchases. (v) Marketing expenses for October are estimated at Rs 300,000.50% of these expenses are fixed whereas remaining amount varies in line with the value of sales. All expenses are paid in the month in which they are (vi) Administration expenses paid for September were Rs.200,000. Due to inflation, theses are expected to (vii) Depreciation is provided (15\% per annum on straight line basis. Depreciation is charged from date of (viii) On 31.10.2009 office equipment having book value of Rs. 500,000(40% of the cost) on 1.10.2009 would be replaced at a cost of Rs. 2,000,000. After adjustment of trade-imallowance of Rs. 300,000 the balance would (ix) The opening balances on 1.10.2009 are projected as under: Required: (a) Prepare a month-wise cash budget for the quarter ending 31.12.2009. (b) Prepare a budgeted profit and loss statement for the quarter ending 31.12.2009
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