Given the following information, prepare a cash budget:
Month
Sales
Purchases
Wages
Production overheads
Selling overheads
Jan
100000
40000
10000
6000
6000
Feb
120000
45000
15000
6500
6500
March
150000
35000
18000
7000
6600
April
160000
30000
20000
7700
6800
May
175000
25000
22000
8000
6200
June
200000
20000
24000
8500
6300
The company has a policy of selling its goods at 50% cash and the balance on credit. On credit sales, 50% is paid in the following month and balance 50% two months from the sale. Purchases are paid one month from the month of purchase. Wages are paid in the following month and overheads are also paid in the following month. The company plans a capital expenditure, in the month of April, for Rs. 25,000.
The company has a opening balance of cash of Rs. 40,000 on 1st Jan 2010. Prepare a cash budget for Jan to June.

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