Cash Budget

In cash budget, payment of dividends and prepaid payments are

• Cash Receipts

• Cash Payments

• Non Cash Receipts

• none of the above

  In a firm, the forecast of wages for month of November, December, January, February and March are Rs 4,800, Rs 5500, Rs 6,000, Rs 6,400 and Rs 6,800. The time-lag in payment of wages is 2 month. Determine the amount of wages payable in each month January to March.

• Rs. 6000, Rs.6400 and Rs.6800

• Rs. 5500, Rs. 6000 and Rs. 6400

• Rs. 4800, Rs. 5500 and Rs. 6000

• Rs. 6000, Rs. 5500 and Rs. 4800

Given estimated sales in February, March, April, May and June are Rs 90,000, Rs 92,000, Rs 50,000, Rs 80,000 and Rs 60,000.  In case 50% of sales are realized in the same month and balance in the next month, determine cash collection from sales in April , May and June.

• Rs. 71000, Rs. 65000 and Rs. 70000

• Rs. 25000, Rs. 40000 and Rs. 30000

• Rs. 46000, Rs. 25000 and Rs. 40000

• none of the above

If in any month, the amount of payment exceeds, it will be carried forward as opening balance in the next month.

• True

• False

The receipts from dividends, refund of tax, rent, interest etc. are

• cash payments

• Cash outflow

• both A and B

• Cash Receipts

Given estimated Purchases in June, July, August, September and October are Rs. 20000, Rs. 35000, Rs. 45000, Rs. 64000 and Rs. 68000. The time-lag in payment of Purchases is 1 month. Determine the amount of Purchases payable in each month July to September,

• Rs. 35000, Rs. 45000 and Rs. 64000

• Rs. 20000, Rs. 35000 and Rs. 45000

• Rs. 45000, Rs. 64000 and Rs. 68000

• All the above

Given estimated sales in January , February, March, April, May and June are Rs. 20000, Rs. 30000, Rs. 40000, Rs. 50000, Rs.60000 and Rs. 80000 .  In case 50% of sales are realized in the next month and balance in the next of next month, determine cash collection from sales in April to June

• Rs. 30000, Rs. 25000, Rs. 45000

• Rs. 45000, Rs. 55000 and Rs. 65000

• Rs. 30000, Rs. 40000 and Rs. 50000

• Rs. 35000, Rs. 45000 and Rs. 55000

Mr. Raghunandan purchased a machinery in the month of June for Rs. 60000 and Payment payable in the month of August and September in two equal Installments . in this situation cash payment for the month.............

• June Rs. 30000 and July 30000

• July Rs. 30000 and August Rs. 30000

• August Rs. 30000 and September Rs. 30000

• None of the above

While preparing a cash budget the focus should be on

• Sources of cash inflow during a particular period.

• Amount of cash to be received from cash inflow sources.

• Timing of cash inflow.

• All of the above

Cash Budget is Expressed in

• Physical Units

• Monetary Term

• both Physical and Monetary

• None of the above