Scribd
Upload
22 views1 page

MAke Up Assignment

The document provides sales, wages, material purchases, and overhead expenses for several months in 2023 and 2024. It also provides additional information on payment terms and cash flows needed to prepare a cash budget for January, February, and March 2024.

Uploaded by

angaruri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
22 views1 page

MAke Up Assignment

The document provides sales, wages, material purchases, and overhead expenses for several months in 2023 and 2024. It also provides additional information on payment terms and cash flows needed to prepare a cash budget for January, February, and March 2024.

Uploaded by

angaruri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Using the following details prepare the cash budget for the months of January, February,

march and April 2024.


The actual revenues and costs for the months of September to December 2023 and
January to April 2024 are shown below;

Month sales wages Material Overheads


purchases
Year 2023 Sh 000 Sh 000 Sh 000 Sh 000
September 3000 600 2000 1000
October 4000 800 3000 1200
November 6000 1000 2500 1600
December 5000 900 3500 1400
Year 2024
January 7000 1200 3000 1800
February 6000 1000 2500 1600
March 5000 900 2500 1400
April 5000 900 3000 1400
Additional information;
1. it is expected that the cash balance on 31 December 2023will be sh 2,200,000
2. Overdraft facilities will be required as and when required.
3. The company pays wages the last day of the month in which they accrue.
4. It is the company policy to pay creditors three months after the receipt of the
supplies.
5. Ten percent of the monthly sales are for cash while the balance are sold on credit.
Debtors are expected to pay two months after delivery of goods.
6. Included in overheads sh 200,000 per month representing depreciation on motor
vehicles. There is a one month delay in paying overhead expenses.
7. A commission of 5% is paid to sales agents on all sales on credit. The payment of
commission is made in the month following that of sale. This commission has not
been included in the overhead expenses above.
8. Delivery is expected in February 2024 of a new machine costing sh 4,500,000 of
which sh 1,500,000 will be paid on delivery and sh 1,500,000 in each of the
following two months.
Required;
A cash budget for the months of January, February and March 2024.

You might also like