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Accounting Assignment | Custom Assignment Help

XYZ Co. arranged the following overdraft facilities with its bankers during the period May 2017 to July 2017 when it will be manufacturing mostly for the stock. help on how to prepare Cash Budget for the above period from the following data, show extent of the bank facilities the company will require at the end of each month.

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Particular

Sales Purchases Wages

March 170,000 120,800 10,000

April 180,000 130,000 8,000

May 110,000 200,000 9,000

June 164,000 240,000 10, 000

July 124,000 240,000 11,000

50% of the credit sales are realized in the month following the sales and remaining 50% in the second month following. Creditors are paid in the month following the month of purchases. There are no cash sales or cash purchases

Cash at bank [overdraft] estimated on 1st May 2017 is Sh.20, 000

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