1.

From the following information, forecast the cash position at the end of April, May and June 2010:

Month February March April May June

Sales (Rs) 120000 130000 80000 116000 88000

Purchases (Rs) 84000 100000 104000 106000 80000

Wages (Rs) 10000 12000 8000 10000 8000

Miscellane ous Expenses 70000 8000 6000 12000 6000

Additional Information: Sales: 20% realised in the month of sales, discount allowed 2%. Balance realised equally in two subsequent months Purchases: These are paid for in the month following the months of supply Wages: 25% paid in arrears following month Miscellaneous expenses: Paid a month in arrears Rent: Rs 1000 per month paid quarterly in advance due in April Income tax: First instalment of advance tax Rs 25000 due on or before 15th June Income from investments: Rs 5000 received quarterly, in April, July etc Cash in hand: Rs 5000 on 1st April