2017 Fall

Solution:
Sales Budget
Particulars june july agust
cash10% 70,000 40,000 40,000
Credit sales 90% 630,000 360,000 360,000
Sales 100% 700,000 400,000 400,000

Cash Colection Budget

particulars April May June July August Receivable
Cash 70,000 40,000 40,000
collection
Collection of
credit sales
80% in 252,000 504,000 288,000 288,000+72,000
next month MAY JUNE July AUG
20% following 54,000 63,000 126,000 72,000
2 month APRIL MAY JUNE JULY

total 376,000 607,000 454,000 432,000

Purchase Budget
part May june july aug sep
350,000 700,000 400,000 400,000 300,000
COGS 0.60 210,000 420,000 240,000 240,000 180,000
Closing inv 420,000 240,000 240,000 180,000
Less: Opening 210,000 420,000 240,000 240,000
inv
purchase 420,000 240,000 240,000 180,000

cash payment
particulars June july August Payable
next month 420,000 240,00 240,000 180,000
Total 420,000 240,000 240,000
 Cash Budget
Particulars June July august
Cash balance 29,000 25,000 25,700
Add receipt
Total collection 376,000 607,000 454,000
Total cash 405,000 632,000 479700
available (A)
Less payment
Purchase pay 420,000 240,000 240,000
Operating expn 28,000 16,000 16,000
S&A expn 140,000 80,000 80,000 -
Fixed cost 55,000 55,000 55,000
furniture 55,000 - -
expenses

Total payment 698,000 391,000 391,000

Minimum cash 25,000 25,000 25,000
Total need(B) 723,000 416,000 416,000
Defecit/suplus(A- (318,000) 216,000 63,700
B)
Loan 318,000 - -
Int - 5300 900
Repayment pric - 210,000 62000
Closing cash bal 25,000 25,000+700=25,700 25,000+800=25,800

318,000*0.10=31800*2/12=5300 318,000-210,000=108,000*0.10=10800/12=900

Budgeted income statement

partulars amt
Sales 1500,000
Less; cogs 60% of sales 900,000
Gross profit 40% of sales 600,000
Less: expenses
Operating 0.04 60,000
selling0.20 300,000
fixed cost 55,000*3=165,000
depriciation 2500*3=7500
 532500
EBIT 67500
Less: interest 5300+900 6200
EBT 61,300
Less tax -
ni 61,300

balance sheet
as onAUG
liabilities amount assets amount
Shareholder equity 511,000=511,000 Cash 25,800
Closing inv. 180000
Short term loan 46,000 Account Receivable 432000
Fixed Assets 168000 160,500
DEpreciation2500*3
NI 61,300
ACCOUNT PAYABLE 180,000
Total 798,300 Total Assets 798300