Homework SoursePlease ans all the following SolutionAnswer PHAROAH COMPANY
Please ans all the following
Solution
Answer
PHAROAH COMPANY
Note -
* Administration expense include depreciation which is a non- cash cost therefore it is excluded.
^ In february month there is shortfall from minimum cash balance position therefore borrowing of 12150 $ raised from local bank
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| Cash Budget | ||
| Particular | January $ | February^ $ |
| Beginning Cash Balance | 58600 | 34940 |
| Add (+) | ||
| Collection from customer | 83600 | 158600 |
| Sale of short term investment | 12830 | - |
| Total Available Cash (A) | 155030 | 193540 |
| Less (-) | ||
| Payment to supplier | 52600 | 87600 |
| Wages paid | 30830 | 40830 |
| Admin Expenses* | 20830 | 23830 |
| Selling Expense | 15830 | 20830 |
| Total spent (B) | 120090 | 173090 |
| Excess cash available (A) - (B) | 34940 | 20450 |
| Borrowing from local bank | - | 12150 |
| Closing cash balance | 34940 | 32600 |
