63. Summarized below are the Receipts ad Payments forecasts for the months of July to December 2010 Selling Purchases Wages Exp. 4,000 2,000 3,000 Misc. Exp. 8,000 7,000 9,000 Months Sales July August September 4,000 5,000 30,000 16,000 18,000 32,000 34,000 4,000 3,000 15,000 17,000 18,000 16,000 October 3,000 30,000 26,000 6,000 2,000 4,000 8,000 9,000 November 4,000 3,000 December 30,000 You are given the following further information: 1. Machinery costing Rs. 20,000 is due for delivery in Dec. payable 10% on delivery and balance after three months. 2. Advance income tax in Nov. Rs. 3,000. 3. Period of credit allowed: (i) (ii) By suppliers 2 months and To customers 1 month. 4. Lag of payments of wages – 12 month. 5. Lag of payment of selling expenses 1 month. You are required to prepare a cash budget for four months starting on 1 September 2010 when there was cash balance of Rs. 10,000.

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Number 5

A company is  preparing its cash buget for the month of May. Below is A/R information: Actual credit sale for March $130,000 Actual credit sale for April $160,000 Estimated credit sales for May $210,000 Estimated collections in the month of sale 25% Estimated collections in the first month after the month of sale 60% Estimated collections in the second month after the month of sale 10% Estimated provision of bad debts (made in month of sale) 5% ** Firm writes off all UNCOLLECTIBLE account receievables at the end of second month after the month of sale.   Required: For the month of May, calculate the following: 1. Estimated cash receipts from account recievable collections. 2. The gross amount of A/R  at the end of the month (after appropriate write off of uncollectiable amounts). 3. The net amount of A/R at the end of the month 4. Recalculate the requirement 1 & 2  under the assumption that estimated collections in the month of sale equal 60% and in the first…