Reference no: EM132620388
Below are information relating to Njombe District Council for the next three months.
Expected cash Receipts October November December
Cash from Grants 21,000,000 8,000,000 12,000,000
Fund raising functions 40,000,000 10,000,000 50,000,000
Sale of brochures 20,000,000 10,000,000 10,000,000
Sale of calendars - 5,000,000 25,000,000
Miscellaneous income 20,000,000 20,000,000 20,000,000
Other informations relating to the above information were as follows:
(a) Grants and miscellaneous income are received within the expected Month.
(b) Sale of brochures and calendar are collected 50% in the month of sale and 50% in the following month.Sale of brochures in the month of September was Tsh 30,000,000/=
(c) Fund raising functions are collected 90% within the month when fund raising function took place and 10% in the following month,the balance for the month of September was Tsh 10,000,000/=
(d) The expected direct cost for each sale of brochures and calendar amounted to 50% of the revenues and payable within the month incurred.
(e) Management and Administrative salaries are expected to be Tsh 9,000,000/= each month.
( f) Electricity and telephone bills are estimated at sh 1,500,000 per Month paid in the following month.
(g) Depreciation is expected to be at Tsh 5,000,000/= per month.
(h) The office is expecting to buy a motor vehicle in October on credit, which will be paid in December for Tsh 75,000,000/=
(i) The computer and printer for office use will be purchased in November for Tsh 42,500,000/= cash.
(j) Shs 3,500,000/= is to be paid as insurance premium for motor vehicle in October.
(k) General expenses payable monthly 6,000,000/=
(l) The opening cash balance at the beginning of October is 4,000,000/=
(m) Direct costs in relation to fund raising functions account for 20% of the revenues.
Required:
Question (a) Prepare a Cash budget from October to December 2011.