Cash Budget Preparation using Spreadsheet

Opening Cash Balance Rs 100,000 (required to maintain this balance as minimum.)

Sales
Sales Sales November 2012 December 2012 Rs 970,000 Rs 1,000.000

Sales are expected to increase (after December 2012) 5% every month from previous month. Collection of Accounts Receivable 20 % sales will be on Cash Basis subject to 2% discount. 50% Accounts Receivable collection will be on following month. 28% Accounts Receivable collection will be on 3rd month from sale. 02% of Accounts Receivable will remain uncollected (Bad debts)

Purchases & Other Payments

Purchases are 75% of the Current month sales 30% Purchases on cash basis 70% Purchases payment in the following month of purchases. Purchases in December 2012 Rs 750,000 Selling and Admin Expenses 15% of sales (All Cash) Interest Payment Rs 10,000 every month from Jan 2013 to June 2013 Principal Payment of Debt in June 2013 Rs 500,000. Payment of Tax in the Month of September 2013 Rs 500,000. Interim Dividend payment Rs 100,000 at the end of March, June, September and December months.

Requirement
1- Preparation of 12 months (Jan 2013 to Dec 2013) Cash budget using spreadsheet. 2- Calculate when cash financing required. (Interest Rate 02% PM for running finance)