Question

AP-10B LO 6 a Inc. provides you with the following budgeted information: May $510,000 June $450,000 280,000 July $550,000 Sales 150,000 250,000 Manufacturing Costs 120,000 400,000 Lal expenditures (machinery and buildings) 210,000 100,000 70,000 General and administration costs (excluding depreciation) 183

Answer 1

May 15,000 June 47,300 July 10,000 Akma Inc., Cash Budget for May, June and July: Particulars Beginning cash balance (1) Cash Collections: Out of cash sales Out of credit sales :- From the months sale From the previous months sale Total Cash Collections (II) Total cash available for disbursement (I+II) =A 51,000 45,000 45,00 55,000 321,300 120,000 492,300 507,300 283,500 137,700 466,200 513,500 346,500 121,500 523,000 533,000 240,000 72,000 160,000 280,000 150,000 250,000 Cash Disbursements:- Payment for Capital expenditure of the months Payment for Capital expenditure of the previous months Payment for manufacturing costs Payment for General and administrative cost (excluding depreciation) Payment for Dividend Total disbursements (B) Add: Borrowing Notes Payable) (C) Ending Balance (A+B+C) 70,000 210,000 100,000 460,000 650,000 146,500 10,000 3,000 425,000 (98,000) 10,000 47,300