Kimwage company's Budgal committee is in the budgeting Lossion for the coming you the following detal are to be
taken into consideration during the budgetins Sussion
A minimum cash equal to 500,000 should always be Maintained
inventors level should be to equal to 25 and 20% at finished goods and raw material respectively of sales needs and production
need of the next quater

Supplier for the raw material will be paid within discount
period in order to take advantages of 2% cash discount.
A
such suppliers will be paid in the quarter of purchase
except for 20% of purchase which will be paid in the next quarter.
collections from Bills receivable will be as follows

20% collections in the quarter of sectors Sales
60% collected in the next quarter
18% Collected in the third quarter
2% will be possible bad debts.

1% of wages incurred in the queuter will accrue and it
will be paid in the next quarter

All overheads will be puid as follows:
Quarter
payment
200
tol
20% 231
This expenses will be exclude depreciation expenses
Desired inventory
as follows
Raw Materal
15,000 kgs
Finished goods
.
2
}
4
3
will be
8,000 units
cash
The budget wordinator has been able to obtain the following
Summaries
(1 The expected financial position as at the end of this year
is as follows
100 000
Bills reçorable (ef)
1600,000
stock, raw materias (140)
1457, 060
Finished good (Goosunt)
2.312,000
Plant
23 000 000
Motor vehicle
10,000,000
Bills paquble
2,100,000
GODO
$900,000
Share Capital
80 000.000
externes earnings
(2) in the form coming your
the cont de rens material will not change
and the efficrney 13 the use of matones will not change ture
(3) Sales will be as follows:
Quarter
2
4
49,000 50,000 Cocou F
Poc
300
peerreed wages
Dividends provision
8 289 000
(4) Each finishat unit require a tgs of raw maternal
(5) Avaragonite of direct tabour wall be 48 parlar and
the praished unt will be requered a hovo
(6) Factory overhead will be applied to production at
rule of 40 per hour
Requrreal! Calculate master budget.