Particular April May June July August Total

units sold 20000 50000 30000 25000 15000

selling price 10 10 10 10 10
Expected sales ($) 200000 500000 300000 250000 150000 1,400,000.00

Page 368
Particular 1 2 3 4 Total
units sold 40,000 60,000 100,000 50,000
selling price 8 8 8 8
Expected sales ($) 320000 480000 800000 400000 0 2,000,000.00
Particular April May June Total
March 30000 30000
April (200000) 140000 50000 190000
May (500000) 350000 125000 475000
June (300000) 210000 210000
170000 400000 335000 905000

Page 368
Particular 1 2 3 4 Total
Account receivable $65,000 $65,000
1 240000 80000 $320,000
2 360000 120000 $480,000
3 600000 200000 $800,000
4 300000 $300,000
Total $305,000 $440,000 $720,000 $500,000 $1,965,000
Particular April May June July August
Expected units sold 20000 50000 30000 25000 15000
Ending inventory @20% 10000 6000 5000 3000
Beginning Inventory 4000 10000 6000 5000
Production 26000 46000 29000 23000

Year-2 year-3
Particular 1 2 3 4 1 2
units sold 40000 60000 100000 50000 70000 80000
Ending inventory @30% 18000 30000 15000 21000 24000
Beginning Inventory 12000 18000 30000 15000 21000
Production 46000 72000 85000 56000 73000

Author:
Production = Expected
unit sold+ending
inventory -Beginning
inventory
Particular April May June July
Production 26000 46000 29000 23000
Per unit@5 130000 230000 145000 115000
Ennding inventory 23000 14500 11500
Beginning Inventory 13000 23000 14500
Purchase (pounds) 140000 221500 142000
Cost per pound@0.40 $ 56,000.00 $ 88,600.00 $ 56,800.00

Year-2 year-3
Particular 1 2 3 4 1
Production 46000 72000 85000 56000 73000
Prodution in pounds @5 230000 360000 425000 280000 365000
Beginning inventory 36000 42500 28000 36500
Ending inventory 23000 36000 42500 28000
Purchase 243000 366500 410500 288500
cost per pound@0.80 $ 194,400.00 $ 293,200.00 $ 328,400.00 $ 230,800.00
Particular April May June Total
March 12000 12000
April $ 33,600.00 $ 22,400.00 56000
May $ 53,160.00 $ 35,440.00 88600
June $ 34,080.00 34080
45600 75560 69520 190680

Particulars 1 2 3 4 total
q4(y-1) 81500 81500
1 $ 116,640.00 $ 77,760.00 194400
2 $ 175,920.00 $ 117,280.00 293200
3 $ 197,040.00 $ 131,360.00 328400
4 $ 138,480.00 138480
198140 253680 314320 269840 1035980
PROBLEM 8–19 collection pattern
S.1: cash collection schedule Amount December
October 400,000 72000 0.2 0.6 0.18
November 525,000 315000 0.2 0.6
December 600,000 120000 0.2
507000

S2: Payment of Account payable

Account payable on November $161,000
December purchase @30% $280,000 $84,000.0

245000

Cash Budget
Paticular December
Beginning cash balance 40000
A. Cash collection
cash sales $83,000
Collection from credit sales 507000
Total cash available for use $630,000

B. Cash Disburshment
Purchase of inventory 245000
Selling and adminstrative less depreciation 380000
Server cost 76000
Dividend 9000
Total Disburshment 710000
C. Cash excess or deficits (A-B) ($80,000)
D. External financing
Borrowing from Bank 100000
Repayment of loan
Interest
Total external financing 100000
E. Ending cash balance $20,000
PROBLEM 8–25 collection pattern
S.1: cash collection scheAmount July August Septemeber Total
May 250,000 7500 7500 0.03
june 300,000 210000 9000 219000 0.7 0.03
July 400,000 100000 280000 12000 392000 0.25 0.7
August 600,000 150000 420000 570000 0.25
Septemeber 320,000 80000 80000
317500 439000 512000 1268500

Cash Budget
Paticular July August Septemeber Total
Beginning cash balance 44,500.00 $28,000 $23,000 44,500.00
A. Cash collection
cash sales
Collection from credit sales 317500 439000 512000 1268500
Total cash available for use $362,000 $467,000 $535,000 $1,313,000

B. Cash Disburshment
Purchase of inventory $180,000 240,000 350,000 $770,000
Salaries and wages $45,000 $50,000 $40,000 $135,000
Advertising $130,000 $145,000 $80,000 $355,000
Rent payments $9,000 $9,000 $9,000 $27,000
Equipment purchase $10,000 $10,000
Total Disburshment $374,000 444000 479000 1297000
C. Cash excess or deficits (A-B) ($12,000) $23,000 $56,000 $16,000
D. External financing
Borrowing from Bank 40000 40000
Repayment of loan -40000 -40000
Interest -1200 -1200
Total external financing 40000 0 -41200 -1200
E. Ending cash balance $28,000 $23,000 $14,800 $14,800
ollection pattern

0.03
0.7
0.25
 Sales budget
May June July August total
units sold 20000 30000 35000 42000
selling price $15 $15 $15 $15
Revenue $300,000 $450,000 $525,000 $630,000 $1,905,000

cash colletion budget

May June July August total
March @10% 12000 12000
April(70%, 10%) 105000 15000 120000
May (all) $60,000.0 $210,000.0 $30,000.0 300000
June (all) $90,000.0 $315,000.0 $45,000.0 450000
July(20%, 70%) $105,000.0 $367,500.0 472500
August (20%) $126,000.0 126000
cash collection 177000 315000 450000 538500 1480500

Production Budget
May June July August total
Ending inventory (A) 4,500 5,250 6,300 4,800 4,800
Expected sales (B) 20,000 30,000 35,000 42,000 127,000
Total requirement (A+B) 24,500 35,250 41,300 46,800 131,800
Beginning inventory 1,250 4,500 5,250 6,300 1,250
Prduction 23,250 30,750 36,050 40,500 130,550 Author:
desidred ending in
Purchase Budget next month prodct
Beginning invntory
May June July August total
Ending inventory (A) 6150 7210 8100 6,340 6,340
Prduction 23250 30750 36050 40500 130550
Total requirement (A+B) 29400 37960 44150 46840 136890
Beginning inventory 2000 6150 7210 8100 2000
Purhase in units 27400 31810 36940 38740 134890
unit price @6
Total purchase $ 164,400.00 $ 190,860.00 $ 221,640.00 $ 232,440.00 $ 809,340.00

cash payment budget

May June July August total
April @40 60000 $ 60,000.00
May @all $ 98,640.00 $ 65,760.00 $ 164,400.00
June @all $ 114,516.00 $ 76,344.00 $ 190,860.00
July @all $ 132,984.00 $ 88,656.00 $ 221,640.00
August @60% $ 139,464.00 $ 139,464.00
Total payment 158,640.00 180,276.00 209,328.00 228,120.00 776,364.00

Manufacturing OH Budget
May June July August total
Indirect Labour 15000 15000 25000 15000 70000
electricity 7000 7000 7000 7000 28000
Author:
1. cash availability (beginning cash
+total cash collectin from sales
2. cash disburshment (payment
+MOH+ assets purchase
supervisory salary 24000 24000 24000 Author:24000 96000
1. cash availability (beginning cash
Indirect Material 15000 12000 20000 +total cash collectin from sales 57000
10000
Factory rent 25000 25000 25000 2. cash disburshment
25000 (payment100000
Total factory OH 86000 83000 101000 +MOH+81000assets purchase 351000
2. financing (Borrowig funds?)

Cash Budget
May June July August total
A. Cash Availability
Beginning cash balance 12000 44,360.00 96,084.00 175,756.00 12000
Cash collection from sales 177000 315000 450000 538500 1480500
Cash available for use -A 189000 359360 546084 714256 1492500
B. Cash Disburshent
Payment to purchase 158,640.00 180,276.00 209,328.00 228,120.00 776,364.00
Indirect Labour 15000 15000 25000 15000 70000
electricity 7000 7000 7000 7000 28000
supervisory salary 24000 24000 24000 24000 96000
Indirect Material 15000 12000 20000 10000 57000
installment
Factory rent 25000 25000 25000 25000 100000
Machinery purshase 60000 60000
Total Disburshment -B 244,640.00 263,276.00 370,328.00 309,120.00 1,187,364.00
Cash excess/(deficits)C=(A-B) (55,640.00) 96,084.00 175,756.00 405,136.00 305,136.00
Financing
Borrowing 100000 100000
Repament loan -100000 -100000
Interest -3333 -3333
Net Financing -D 100,000 - - (103,333) (3,333)
Ending cash Balance : E=C+D 44,360.00 96,084.00 175,756.00 301,802.67 301,802.67
 September october
32000 30000

20% 70% 10%

120000
150000

September
4500
32,000
36,500
4,800
31,700
Author:
desidred ending inventory is 20% of
next month prodction
Beginning invntory of May is 2000

ning cash
sales
ment
ning cash
sales
ment

ds?)