Dream Wheels limited is in the process of reviewing its master budget for the six months ending 31 December 2009 The statement of financial position for the...

      

Dream Wheels limited is in the process of reviewing its master budget for the six months ending 31
December 2009
The statement of financial position for the year ended 30 June 2009 is as follows:-
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Additional information

1. The selling price from May 2009 to September 2009 was sh. 6,000 per unit. The price
increased to sh. 8,000 per unit from October 2009

2. 50% of sales are paid in cash and 50% are sold on credit

3. Credit sales are paid two months after the month of sale

4. Purchase are paid two months after the month of purchase

5. Wages and salaries are paid 75% in the month in which they are incurred and 25% in the
following month

6. Overheads are paid one month in arrears

7. Fixed assets worth shs. 30 million were purchased during the month of October 2009. The
amount is to be paid in three equal monthly installments commencing January every year.

8. Depreciation on fixed assets is at the rate of 10% per annum on a straight line basis. A full
year's depreciation is provided for fixed assets owned as at 31 December every year.
9. Shares worth sh. 20 million were issued through the stock exchange during the month of
September 2009
10. The value of closing stock as at 1 July 2009 was equal to the previous purchases

11. Dividends worth sh. 10 million relating to year 2009 will be paid to shareholders during the
month of December 2009

Required:

Revised cash budget for six months period ending 31 December 2009

  

Answers


Martin
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marto answered the question on February 26, 2019 at 05:24


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