Prepare a cash budget, Financial Accounting

Assignment Help:

Question:

The accountant of a company is preparing the cash budget for the first six months of 2011 and obtains the following information:

Sales on credit, variable costs and wages are budgeted as follows (the November and December of the previous year being the actual figures for those months):

1705_Prepare a cash budget.png

Fixed expenses amount to Rs 1,500 net per month and the half year's preference dividend of Rs 1,400 net is due on June 30. Corporation tax amounting to Rs 8,000 is payable in January and progress payment under a building contract are due as follows:

March 31st Rs 5,000 and May 31st Rs 6,000.

The terms on which goods are sold are net cash in the month following delivery. Variable costs are payable in the month following that in which they are incurred and are as to 50% subject to 2½% discount, and the balance net. It is found that 75% of debtors to whom sales are made pay within the period of credit and the remainder do not pay until the following month. The company pays all its accounts promptly.

Prepare a cash budget.


Related Discussions:- Prepare a cash budget

Petition by creditor-bankruptcy, Petition by creditor Any creditor incl...

Petition by creditor Any creditor including an assignee of a debt, may petition, provided: The debt due to him amounts to at least Shs 1,000; The debt is certain and i

Amalgamation of partnership, Please I need assistance with steps to prepare...

Please I need assistance with steps to prepare amalgamation

Balance Sheet & Statement of Cash Flows, I need some guidance in how certai...

I need some guidance in how certain events are to be recorded on both the balance sheet and statement of cash flows.

Accounting Project, Can you help me balance my account number out

Can you help me balance my account number out

Calculate breakeven in sales units and in sales value, Calculate breakeven ...

Calculate breakeven in sales units and in sales value: Tycoon makes and sells 600 toy cars per month.  Each toy car is sold for RM40 each.  Tycoon is currently producing at 50

How should i record the transaction on the com''s cash record, I am working...

I am working on a bank reconciliation problem. How should I record the following transaction on the company's cash record? (10/31/13 Bank Rec) A two month, 8%, $1350 customer's not

Calculate the standard cost and profit, Question: A company produces an...

Question: A company produces and sells a single product, the standard unit cost details of which are as follows: Direct material 2 kilos x Rs4.5 per kilo Direct labour 3 ho

What is financial statements, Q. What is Financial Statements? Financia...

Q. What is Financial Statements? Financial Statements - Presentation of financial data involving BALANCE SHEETS, INCOME STATEMENTS and STATEMENTS OF CASH FLOW or any supporting

Statement of cash flow, under gaap, are proceeds from capital lease obligat...

under gaap, are proceeds from capital lease obligation reported in the statement of cash flow and why

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd