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a.) | Cash Budget for courante ltd for the four months to 30 April19-2. | ||||
January | February | March | April | ||
Opening Balance | 9,500 | 20,700 | 26,400 | 12,400 | |
Add: Collection | |||||
Collection of trade debtor of 31 Dec. | 17,000 | - | - | - | |
Cash Sales (40% of month sales ) | 10,000 | 11,200 | 12,000 | 13,200 | |
Collection of Credit sales ( 60% of month sale in following month) | - | 15,000 | 16,800 | 18,000 | |
Total Cash Available | 36,500 | 46,900 | 55,200 | 43,600 | |
Less: Payments | |||||
Payment of trade creditors of 31 Dec. | 9,000 | ||||
Payment of Purchases in following month | - | 10,000 | 8,000 | 12,000 | |
Payment of selling & distribution of 31 Dec. | 1,200 | - | - | - | |
Payment of selling & distribution (10% of month sale) in following month | - | 2,500 | 2,800 | 3,000 | |
Payment for administration Expenses (8,000 - 2,400 )* | 5,600* | 8,000 | 8,000 | 9,300 | |
Payment for Additional Machinery | - | - | 24,000 | - | |
Payment of Interim Dividend (25,000 x 0.10) | - | - | - | 2,500 | |
Total Payments | 15,800 | 20,500 | 42,800 | 26,800 | |
Closing Balance | 20,700 | 26,400 | 12,400 | 16,800 | |
b.) | Forecast profit & loss account for four months to 30 April 19-2 | ||||
Sales ( 25,000 + 28,000 + 30,000 + 33,000 ) | 116,000 | ||||
Less: Cost of Goods sold | |||||
(12,000 + 10,000 + 8,000 + 12,000 + 15,000 -9,000) | 48,000 | ||||
Gross Profit | 68,000 | ||||
Less: Expenses | |||||
Selling & Distribution ( 116,000 x 10% ) + (2,000 x 50% ) | 12,600 | ||||
Administration expenses ( 2,400 + 5,600 + 8,000 + 8,000 + 8,000 ) + (2,000 x 50% ) | 33,000 | ||||
Debenture Interest ( 10,000 x 12% x 4/12 ) | 400 | ||||
Total Expenses | 46,000 | ||||
Net Income | 22,000 | ||||
Depreciation: | |||||
Freehold premises ( 20,000 x 3% x 4/12) | 200 | ||||
Plant & Machinery ( 15,000 x 20% x 4/12) +( 24,000 x 20% x 2/12) | 1,800 | ||||
Total Depreciation | 2,000 | ||||
Forecast Balance sheet as at 30 April 19-2 | |||||
Fixed Assets | Cost | Dep. | Net | ||
Freehold Premises | 20,000 | 4,200 | 15,800 | ||
Plant & Machinery | 39,000 | 10,800 | 28,200 | ||
59,000 | 15,000 | 44,000 | |||
Current Assets | |||||
Stock | 9,000 | ||||
Trade Debtors (33,000 x 60% ) | 19,800 | ||||
Cash at bank | 16,800 | ||||
Administration expenses prepaid | 1,300 | ||||
46,900 | |||||
Less: Current Liabilities | |||||
Trade Creditors | 15,000 | ||||
Interest on Debenture payable | 400 | ||||
Selling & distribution expenses accrued (33,000 x 10% ) | 3,300 | 18,700 | 28,200 | ||
72,200 | |||||
Less: Long term liabilities 12% debentures | 10,000 | ||||
62,200 | |||||
Share Capital & reserves | |||||
Ordinary share of £ 1 | 25,000 | ||||
General Reserve ( 15,000 + 10,000 ) | 25,000 | ||||
Retained earnings (2,700 + 22,000 - 10,000 - 2,500) | 12,200 | ||||
62,200 | |||||
- | |||||
solve step by step for my learning and understanding Preparation of cash budget forecast profit and...
part b prepare the cash budget Bee Gee Company prepares monthly cash budgets. Below is a set of relevant data extracted from existing reports, and the subsidiary budgets for the two months of September and October 2020. Sales Purchases Wages Manufacturing overhead Administration expenses Sale of equipment Cash paid for new IT equipment September RM 3,140,000 1,620,000 514,000 216,000 390,000 October RM 4,120,000 2,160,000 552,000 234,000 390,000 82,000 165,000 All sales are on credit. Collections from debtors normally have the...
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