7140
From the information given below prepare a cash budget for SINGA Nigeria Limited for the first si
From the information given below prepare a cash budget for SINGA Nigeria Limited for the first six months of 2005. Assume a nil opening balance.
Sales
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(N)
(N)
Nov. 2004
150,000
70,000
Dec. 2004
160,000
80,000
Jan. 2005
180.000
80,000
Feb. 2005
160,000
90,000
Mar. 2005
160,000
70,000
Apr. 2005
120,000
70,000
May 2005
140,000
60,000
June 2005
180,000
80,000
(a) Sales are realized 40% in cash, two thirds of the balance after 30 days and the remainder after another 30 days.
(b) Purchases are paid for 50% immediately and the balance two months after.
(c) Office running cost of N22,000 monthly up to April 1998 and N24,000 thereafter are settled during the month.
(d) Computers are to be acquired in December 1997 for N45,000 for a the emonth instalmental payment starting with delivery.
(e) A new generator costing N20,000 is to be purchased in march 1998 under a trade-off agreement on the existing one with a value of N12,000.
(f) Companies Income Tax of N28,000 payable in equal quarterly installments has been agreed with the Revenue Service first installment being due in January 1998.
(g) It is proposed to pay dividends to shareholders in May 1998 amounts due is N40,000.
(h) Annual rent on the company premises is due in June. The Estate Agents have written to inform the company that 20% increase on the annual rent of N60,000 is inevitable.
(i) The company expects to sell unserviceable equipment in February 1998 for N18,000. Show all workings.
