QJGIVEN THE FOLLWING INFORMATION: (SHOW
WORKINGS)
• MAKE SCHEDULE FOR CASH COLLECTION FROM
CUSTOMERS AND CASH PAYMENT TO SUPPLIERS
5 MARKS EACH
• MAKE PROFORMA CASH BUDGET FOR JAN,
FEB.MARCH AND THE QUARTER (ALL THE
MONTHS) 15 MARKS
• MAKE PROFORMA INCOME ST FOR THE QUARTER
10 MARKS
• MAKE PROFORMA BALANCE SHEET FOR THE
QUARTER 10 MARKS
OU HAVE STARTED A BUSINESS WITH INITIAL CASH AMOUNT
oF 500,000(beg cash)
HE SALES OF THE COMPANY FOR THE NEXT 3 MONTH (JAN;(400,000 ,FEB 160,000 MARCH 160,000
THE COMPANY EXPECTS •ro HAVE THE FOLLOWING SALES
OLLECTION PATTERN
SALES ON CASH IN THE SAME MONTH 20%
TO BE COLLECTED IN THE SECOND MONTH OF SALES 70%
SALES EXPECTED TO BE NEVER COLLECTED IN THE SECOND
MONTH END 10%
GROSS PROFIT MARGIN 60%
PURCHASES OF THE COMPANY EXPECTED TO BE JAN:200,000 FEB 80,000 MARCH 80,000
THE PAYMENT FOR THE PURCHASFS IS MADE IN THE THIRD
MONTH
PATENT IS BOUGHT IN THE FIRST MONTH WORTH IN JAN 36000
PATENT WILL BE AMORTIZED OVER NEXT THREE
YEARS,MONTHLY 1000
PLANT AND MACHINERY ARE BOUGHT IN FIRST MONTH WORTH 60,000
PLANT WILL DEPRECIATED PER 15% PER YEAR1.25% PER MONTH
RENT PRE PAYMENT IN MADE IN JAN FOR NEXT ONE YEAR
WORTH 48000
SALARIES ARE PAID MONTHLY WORTH (EACH ) 12000
UTILITY BILLS PAID MONTHLY IN CASH WORTH (EACH)10,000
TAX PAID AT 30% TAX RATE PAID AT THE END OF THIRD MONTH
IS OUT OF WHICH 87825 IS PAID AT THE END OF THIRD
MONTH AN REST WAS ACCRUED
MINIMUM BALANCE TO BE MENTAINED EVERY MONTH 100,000
aNY DEFICIT IN THE CASH WILL BE BORROWED ON 2%
MONTHLY INTEREST
