Suppose Revathi Ltd expects only cash receipts in October from collections of receivables. Cash receipts in October are based on anticipated collections of sales that were made in August and September, and anticipated sales for October, and are projected as shown in The beginning cash balance is INR 67,000. Cash disbursements are anticipated as follows:
|
Material purchases (for September) Don't use plagiarized sources. Get Your Custom Essay on
prepare the cash budget for the firm for the month of october 610204
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|
INR 2,00,000 |
|
Manufacturing labour |
2,09,000 |
|
Manufacturing variable overhead |
1,04,500 |
|
Fixed manufacturing overhead |
80,000 |
|
(excluding non-cash items) |
|
|
Fixed selling, general and administration |
45,000 |
|
(excluding non-cash items) |
|
|
Cash payments for capital acquisitions |
1,20,000 |
|
(from the capital budget) |
|
|
Payments of short-term borrowings |
70,000 |
|
Total disbursements for October |
8,28,500 |
Table 4.11 Cash receipts in Octobe
|
Month |
Sales volume |
Unit sales |
Percentage collected In October |
Collections In October On INR) |
|
August |
44,000 |
INR 50 |
20 |
4,40,000 |
|
September |
50,000 |
INR 50 |
30 |
7,50,000 |
|
October |
40,000 |
INR 50 |
50 |
10,00,000 |
|
21,90,000 |
Prepare the cash budget for the firm for the month of October.
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