| Ques. 1 - Preepare a cash Budget |
| Sales | | | | | | | Sales has been divided in two parts. Cash sales and credit sales. Cash sales are collected in the same month. |
| | Nov | Dec | Jan | Feb | Mar |
| Total Sales | 160,000 | 200,000 | 120,000 | 160,000 | 140,000 |
| Cash Sales (40%) | 64,000 | 80,000 | 48,000 | 64,000 | 56,000 |
| Credit sales (60%) | 96,000 | 120,000 | 72,000 | 96,000 | 84,000 |
| Collections of Credit Sales | | | | | | | Collection of credit sales are given as 30% in the month of sales, 60% in next month and 8% in third month. Collections has been shown accordingly. The total collection from credit sales is taken in cash budget |
| | Nov | Dec | Jan | Feb | Mar |
| Credit Sales for the month of |
| Nov | 28,800 | 57,600 | 7,680 |
| Dec | | 36,000 | 72,000 | 9,600 |
| Jan | | | 21,600 | 43,200 | 5,760 |
| Feb | | | | 28,800 | 57,600 |
| Mar | | | | | 25,200 |
| Total Collections for the month | 28,800 | 93,600 | 101,280 | 81,600 | 88,560 |
| Felasco Nurseries' SouthernDivision |
| Cash Budget |
| For the quarter ended March 31, 20xx |
| | Jan | Feb | Mar | Total |
| Balance Beginning | 9,600 | 28,140 | -2,900 | 9,600 |
| Receipts |
| Cash Sales | 48,000 | 64,000 | 56,000 | 168,000 | | | Cash Sales and Collections from credit sales is taken from above computations |
| Collections from credit sales | 101,280 | 81,600 | 88,560 | 271,440 |
| Total Cash available | 158,880 | 173,740 | 141,660 | 449,040 |
| Disbursements |
| Purchases | 86,800 | 124,700 | 99,440 | 310,940 |
| Salaries & Wages | 25,200 | 33,200 | 21,200 | 79,600 |
| Utilities | 4,220 | 4,220 | 4,220 | 12,660 |
| Collection fees | 1,700 | 1,700 | 1,700 | 5,100 |
| Rent | 5,300 | 5,300 | 5,300 | 15,900 |
| Supplies | 2,480 | 2,480 | 2,480 | 7,440 |
| Small tools | 3,140 | 3,140 | 3,140 | 9,420 |
| Miscellaneous | 1,900 | 1,900 | 1,900 | 5,700 |
| Total Cash Disbursement | 130,740 | 176,640 | 139,380 | 446,760 |
| Balance Ending | 28,140 | -2,900 | 2,280 | 2,280 | | | Ending cash balance is short in Feb and March. Need Finance |
| Ques 2 |
| | Felasco Nurseries should anticiapte to take a loan of $9,000 in the month February, so that the ending balance can be $6,000. However, a part of loan ($5,000) can be repaid in March. |
Account_tutor
felasco_nurseries_inc_cash_budget.xlsx
