SMU MBA ASSIGNMENTS

Sikkim manipal Solved MBA Assignments, SMU MBA, Solved assignments, 1st sem, 2nd sem, 3rd sem, 4th sem, SMU MBA PROJECTS

Email Us

3 A company making for stock in the first quarter of the year 2017 is assisted by its bankers with overdraft accommodation. The following are the relevant budget figures:

December 02, 2017 By: Meliza Category: 1st SEM

3 A company making for stock in the first quarter of the year 2017 is assisted by its bankers with overdraft accommodation. The following are the relevant budget figures:

Sale (Cr.) Rs.        Purchases (Cr.) Rs.           Wages &Expenses (Cr.) Rs.

November 2016 1,20,000                   83,000                        10,000

December 2016 1,28,000                   96,000                        10,000

January 2017         72,000               1,62,000                        11,000

February 2017   1,16,000                1,64,000                        10,000

March 2017                   84,000                     40,000                       12,000

 

Given the following further information you are required to prepare a Cash Budget for the quarter January to March 2017, showing the budgeted amount of bank facilities required, if any, in each month end:

  1. a) Budgeted cash at bank on 1st January 2017 Rs. 20,000
  2. b) Credit terms of sales are payment by the end of the month following the month of supply. On average one half of sale are paid on due date, while the other half are paid during the next month. Creditors are paid during the month following the month of supply.
  3. c) Wages and expenses are paid twice a month on 1st and 16th respectively.

From the above information prepare a Cash Budget for the quarter January to March 2017, showing the budgeted amount of bank facilities required, if any, in each month end.

 

Answer: Cash Budget for the period ending March, 2017

Particulars January February March
Receipts
Opening balance 20,000 37,000 (35,000)
Collection from debtors 1,24,000 1,00,000 94,000
A. Total 1,44,000 1,37,000 59,000
Payments
Payments to creditors 96,000 1,62,000 1,64,000
Wages 11,000 10,000 12,000
B. Total 1,07,000 1,72,000 1,76,000
Closing balance (A-B) 37,000 (35,000) (1,17,000)
Overdraft needed Nil 35,000 1,17,000

 

WORKING NOTES

 

  1. Collection from debtors

As given in the question, Credit terms of sales are payment by the end of the month following the month of supply. On average one half of sale are paid on due date, while the other half are paid during the next month.

 

January= 50% of November and 50% of December

 

February= 50% of December and 50% of January

 

March= 50% of January and 50% of February

 

  1. Payments to creditors

As given in the question, Creditors are paid during the month following the month of supply.

 

January= Purchases of December

 

February= Purchases of January

 

March= Purchases of February

 

  1. Wages payment

According to the question, they are paying wages in the same month so we take amount of wages of current months only i.e. January month wages are Rs.11,000 so we consider Rs.11,000 paid in January only.

 

for solution contact us :

SMU MBA fall-2017
Dear Students,
SMU MBA fall-2017 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format “ On +91 9995105420 we will reach back you with in 24H ”

 

Leave a Reply

You must be logged in to post a comment.