Prepare a Cash Budget for 6 months that ended on 30 June 2010, on the basis of the following information:

1. The estimated Sales and Expenses are as follows:

Â	Nov."09 Rs.	Dec.09 Ps.	jan"10 Rs.	Feb.10 Rs.	March10 Rs.	Apri10 Rs.	May10 Rs.	june"I0 Rs.
Sales	2,00,000	2,20,000	120,000	1.00,000	1,50,000	2.40.000	2,00,000	2,00,000
Wages & salaries	30,000	30.000	24,000	24,000	24,000	30,000	27,000	27.000
Misc. expenses	27,000	27.000	21,000	30,000	24,000	27,000	27,000	27,000

1. 20% of the sales are in cash and the balance on credit.
2. The firm has a gross margin of 25% on sales.
3. 50% of the Credit Sales are collected in the month following the sales, 30% in the second month and the balance 20% in the third month.
4. Material for the sale of each month is purchased 1 month in advance on a credit for 2 months.
5. The time lag in the payment of wages and salaries is 1/3 of a month and of Miscellaneous Expenses is
   1 month.
6. Debentures worth Rs. 40,000 are sold in January 2010.
7. The firm maintains a minimum Cash Balance of Rs. 40,000. Funds can be borrowed @ 12% p.a. in the multiples of Rs. 1,000, the interest being payable on a monthly basis.
8. Cash Balance at the end of December 2009 is Rs. 60,000.