ABC Co. wishes to arrange overdraft facilities with its bankers during the period April to June of a particular year, when it will be manufacturing mostly for stock. Prepare a cash budget for the above period from the following data, indicating the extent of the bank facilities the company will require at the end of the each month.

a) Month Sales Production Wages
(Rs) (Rs) (Rs)
February 180000 124000 12000
March 192000 144000 14000
April 108000 243000 11000
May 174000 246000 10000
June 126000 268000 15000

b) 50% of the credit sales are realised in the month following the sales and the remaining sales in the second month following; creditors are paid in the following month of purchase.

c) Cash at bank on 1st April (estimated) Rs. 25000.

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