Quiz 1

Following data available for XY Company:

Months January February March April May June

Sales
Unit 10,000 11500 12500 13000 11000 12500

 Selling price per unit is 30$ per unit.

 Selling price expected to rise by 5% in each month from February.
 20% is the cash sales, 60% is in 2nd month and remaining in 3rd month.
 Each unit require 2 kgs of raw material. Each kg cost 2.5$ per unit. Payments are made after 2
months of purchases.
 In January company made the policy to hold 15% of finished goods and 20% of raw material at
the end of each month of next month sales.
 Each unit take 1.5 hours of labor. Labor cost per hour is 5$.
 Labors are paid in the same month in which they worked.
 Fixed cost for the month is 50000$ and 10,000& is depreciation which is included in fixed cost.
 Company wishes to purchase new machinery on 1 st April for 75000$ on cash.
 Finished good inventory on 1st January are 2000 units and raw materials are 3750kgs.

Required:

Prepare the cash budget for Feb to May.