Cash Budget

J F M
Planed Cash Reciepts:
70% cash sales 350,000.00 350,000.00 350,000.00
Collection of Account Recievables
50% of credit sales of the month - - -
30% of credit sales of the prev. month 135,000.00 135,000.00 135,000.00
18% of credit sales of the pre prev. month - - -

Total Cash Reciept 135,000.00 135,000.00 135,000.00

Total Available Cash (A) 485,000.00 485,000.00 485,000.00
Planned Cash Disburesment:
Cash Purchase - - -
Payemnt to Creditors 160,000.00 160,000.00 160,000.00
Payment of Direct Labour cost 120,000.00 120,000.00 120,000.00
Total Manufacturing Overhead 40,000.00 40,000.00 40,000.00
Administrative Overhead 10,000.00 10,000.00 10,000.00
Selling Overhead 50,000.00 50,000.00 50,000.00
Purchase of New Assets
repayment of loan 230,000.00
Interest on Long Term Loan
Payment of Income Tax
Total Planned Cash Disbursement (B) 610,000.00 380,000.00 380,000.00
Cash Surplus (Deficit) (125,000.00) 105,000.00 105,000.00
Add: Beginning Balance of Cash 20,000.00 - 960.00
Cash Avialable (105,000.00) 105,000.00 105,960.00
Financing:
Borrowing/Loan 105,000.00 - -
Repayment:
Principal 102,000.00 3,000.00
Interest 2,040.00 90.00
Closing Balance of Cash - 960.00 102,870.00
Total Ref Minimum Cash Balance
Loan Interest Rate
1,050,000.00

- Loan amount
405,000.00 150,000.00
- Calculation of Loan
Amount more needed for multiple of 10000
405,000.00 Loan amount
1,455,000.00
Loan Repayment
- Repayment
480,000.00 80,000.00 A/P Amount Available
360,000.00 Principal Amount to be paid
120,000.00
30,000.00 Principal
150,000.00
-
230,000.00
-
-
1,370,000.00
85,000.00
20,000.00
105,000.00

105,000.00

105,000.00 - Loan after repayment

2,130.00 - Interest Payable
102,870.00
 -
12%

Loan amount
J F M
105,000.00 - -

105,000.00 - -

Loan Repayment
J F M
105,000.00 105,000.00
102,941.18 102,941.18
941.18
- 102,000.00 3,000.00
 Proforma Income Statement
Particulars Detail (Rs) Amount (Rs)
Sales Revenues 1,500,000.00
Less: Cost of goods sold 960,000.00
Gross Margin 540,000.00
Less: Administrative, Selling and Distribution Expenses 255,000.00
Depreciation -
Earning Before Interest and Taxes 285,000.00
Less: Interest 2,130.00
Net Operating Income 282,870.00
Add: Dividend Income -
Total Income Before Tax 282,870.00
Less: Tax -
Net Income 282,870.00

Notes:
Interest on Dividend = 300000*10%*3/12 -
 Budgeted Cost of Goods Sold
Particulars Amount (Rs)
Direct Material 480,000.00
Direct Labour 360,000.00
Variable Manufacturing OH Cost 120,000.00
Cost of Production 960,000.00
Add: Value of Beginning Inventory 80,000.00
Cost of Goods Available 1,040,000.00
Less: Value of Ending Inventory 80,000.00
Cost of Goods Sold 960,000.00
 Pro-forma Balance Sheet
Opening Projected
Assets Amount (Rs) Amount (Rs) Amount (Rs)
Current Assets:
Cash 20,000.00 102,870.00
Accounts Receivable 150,000.00 150,000.00
Inventory:
Raw Material 80,000.00 80,000.00
Finished Goods 80,000.00 80,000.00 160,000.00
Total Current Assets 330,000.00 412,870.00
Plant, Property and Equipment
Opening 600,000.00 600,000.00
Purchase -
Less: Accumulated Depreciation 30,000.00
Net Plant, Property and Equipment 600,000.00 570,000.00
Investment in Stocks 100,000.00 100,000.00 100,000.00
Total Assets 1,030,000.00 1,082,870.00
Liabilities and Owner's Equity
Liabilities
Current Liabilities:
Accounts Payable 80,000.00 80,000.00
Notes Payable -
Interest Payable -
Sales Commision Payable -
Total Current Liabilities 80,000.00 80,000.00
10% Debenture -
Bank Loan 230,000.00 -
Total Debt 310,000.00 80,000.00
Equities:
Paid in Common Stock 600,000.00 600,000.00
Retained Earnings 120,000.00
Opening Balance 120,000.00
Add: Net Income 282,870.00 402,870.00
Total Equity 1,002,870.00
Total Liabilities and Equities 1,030,000.00 1,082,870.00
 Budgeted Sales By Time
Months Units Price Amount
Janauary 20,000.00 25.00 500,000.00
Febrauary 20,000.00 25.00 500,000.00
March 20,000.00 25.00 500,000.00
Total 60,000.00 25.00 1,500,000.00

Account Receivable Collection Budget

Particulars J F M
Beginning Balance of A/R 150,000.00 150,000.00 150,000.00
Credit Sales 150,000.00 150,000.00 150,000.00
Total Collectibles 300,000.00 300,000.00 300,000.00
Expected Cash Collection:
27% 50% in Month of Sales
90% 30% in Next Month 135,000.00 135,000.00 135,000.00
20% in following Next Month -
Total Collection from Customers 135,000.00 135,000.00 135,000.00
Bad Debt 15,000.00 15,000.00 15,000.00
Ending Balance of A/R 150,000.00 150,000.00 150,000.00

Production Budget
Particulars J F M
Planned Sales Units 20,000 20,000 20,000
Desired Ending Inventory 5,000 5,000 5,000
Total Requirement 25,000 25,000 25,000
less: Beginning Inventory 5,000 5,000 5,000
Planned Production Units 20,000 20,000 20,000

Material Consumption and Purchase Budget

J F M
Planned Production Units 20,000 20,000 20,000
Consumption rate
Material required for prod. - - -
Add:Cl. St - - -
less:Op 40,000 - -
Material purchase (in units) 80,000 80,000 80,000

cost price 2.00 2.00 2.00

Material purchase (in Rs) 160,000.00 160,000.00 160,000.00
 Budgeted Direct Labour
Particulars
Planned Production
Standard DLH Rate
Planned DLH
Wage Rate Per Hour
Planned Labour Cost

Total Budgeted Manufacturing O

150,000.00 Particulars
450,000.00 Overheads
600,000.00 Indirect Material
Heat, Light and Power
- Maintenance
405,000.00 Indirect Labour
- Supervision
405,000.00 Taxes and Insurances
45,000.00 Depreciation
150,000.00

Total Manufacturing OH

Total April
60,000
5,000
65,000 -
5,000 5,000 Budgeted Operating Exp
60,000 (5,000) Particulars
Selling and Distribution Expenses
Sales Commission @Rs 2 per Unit
Carriage Outward
t Total
Total A Administrative Expenses
60,000 (5,000) Advertising
Executive Salaries
240,000 - Depreciation: Office Equipment
40,000 Insurance
40,000 Property Taxes
240,000 Total
bad debt
2.00 Total Operating Expenses
480,000.00
 Budgeted Direct Labour Cost
J F M Total
20,000 20,000 20,000 60,000
4 4 4 4 5000
80,000 80,000 80,000 240,000
1.50 1.50 1.50 1.50
120,000.00 120,000.00 120,000.00 360,000.00

udgeted Manufacturing Overhead

J F M Total

40,000.00 40,000.00 40,000.00 120,000.00

-
-
-
-
-
-

40,000.00 40,000.00 40,000.00 120,000.00

Budgeted Operating Expenses

J F M Total

50,000.00 50,000.00 50,000.00 150,000.00

- - - -
50,000.00 50,000.00 50,000.00 150,000.00

10,000.00 10,000.00 10,000.00 30,000.00

- - - -
10,000.00 10,000.00 10,000.00 30,000.00
- - - -
- - - -
20,000.00 20,000.00 20,000.00 60,000.00
15,000.00 15,000.00 15,000.00 45,000.00
85,000.00 85,000.00 85,000.00 255,000.00