Case For Budget and Cash Flow

Jayeshbhai Jordar and Mudrabhabhi have a young daughter Siddhi age 10

years. Jayeshbhai works in a private company on a monthly salary of 60,000 Rs
after tax. Mudrabhabhi runs a small business of homemade khakhra and
pickles. She sells on an average 200 packs of khakhra monthly which is priced
at 50 Rs per packet. She also sells pickles on an average 50 bottles monthly
each priced at 100 Rs.
The family leaves in a 1 bhk house with a monthly rental of 15,000 Rs. Their
electricity bill is about 800 Rs. For January to April months. This bill increases to
about 1200 Rs during May to September and falls to 650 Rs During October to
December. Their family’s TV cable bill is Rs. 3000 for 6 months. It is paid twice
in a year, in the month of June and December.
The grocery expenses is about Rs. 1100 per month. Jayesh Bhai uses a scooter
and its petrol expense is about Rs. 2000 month. Vehicle insurance cost is Rs.
550 paid annually. Mudra Bhabhi’s business inventory includes glass bottles,
flour, condiments, oil and vegetables etc. She stocks this inventory every
quarter worth Rs. 10,000 during the months of January, April, July, October.
Siddhi school fees is Rs. 80,000 per year. Jayesh Bhai pays this in 4 equal
instalments each quarter. Their medical and dental expense is about Rs. 3500
per year. (Consider this expense in the month of August.) House maintenance
cost is about Rs. 250 every alternate month starting February.) Their family
insurance premium payments is due in the month of May each and it equals
Rs. 15000. Jayeshbhai and Mudrabhabhi love to travel and they usually have 3
trips during the year in the month of May, October and December. Avg cost of
each trip is Rs. 12,000.
Using this information, Answer the following questions,
Q1 What does the Jordar family’s budget look like. Please plot for a year
Q2 Looking at the current income and expenses, how much total amount do
you think that family is able to save.
Q3 If the opening of cash and bank balance is Rs. 1,00,000 on 1 st Jan 2022.
Using the above information of incomes and expenses plot the monthly
cashflow and the cash & bank balances of each month.
Q4 Based on question 3, identify the months where the family is likely to
strained on money and the months where they are likely to have surpluses.