Cash Budget, Corporate Finance

Assignment Help:
Analyse the budget shown below, and discuss any issues raised regarding cash flow and legal requirements. Suggest at least three alternative courses of action the organisation could take to help overcome the issues identified. For the purpose of this exercise, please assume that the organisation has an agreed overdraft of £750,000 with its bankers.

Task 4 exercise:

Jan
Feb March April May June
Receipts: £000 £000 £000 £000 £000 £000

Sales Receipts
2110 2156 2164 2219 2284 2444

Proceeds from loan
4000

Total Receipts
6110 2156 2164 2219 2284 2444

Payments: £000 £000 £000 £000 £000 £000

Material Purchases
718 733 757 777 822 880

Wages
600 600 550 550 550 450

Fixed Costs
700 700 710 710 715 715

Lease of new building
200 200 200 200 200

Advertising fees
120 120 120 130

Corporation tax
650

Capital expenditure
2750

Loan repayment
450 450 450

Total payments
2018 2353 5087 2807 2867 3345


Net cash flow
4092 (197) (2923) (588) (583) (901)

Opening bank balance
185 4277 4080 1157 569 (14)

Closing Bank Balance
4277 4080 1157 569 (14) (915)

Related Discussions:- Cash Budget

What do you understand by interest rate risk, Problem: Banks are net le...

Problem: Banks are net lenders, when they have excess funds, or net borrowers, when they have future deficits. As any lender or borrower, they cannot eliminate interest rate r

Procter and Gamble, Summarize the key statistics for the stock and the indu...

Summarize the key statistics for the stock and the industry (choose 8 items you believe informative, such as P/E ratio, market capitalization, dividend yield, ROE, sales etc.tion..

Explain ethical decision-making, Problem 1: (a) Will a corporation be m...

Problem 1: (a) Will a corporation be morally responsible for its actions? (b) Why do corporations engage in social responsibilities, and what are the potential drawbacks?

Calculate the net present value of the proposed venture, MOUNTAIN BLEND SPE...

MOUNTAIN BLEND SPECIALITY COFFEE CO Mountain Blend Speciality Coffee Co, a listed company, is the largest coffee wholesaler and roaster in Carvania. At present it is solely invo

D, differentiate between allocative efficiency and pricing efficiency

differentiate between allocative efficiency and pricing efficiency

Illustration of a recent financial crisis, Question: "The history of ba...

Question: "The history of banking is so deeply littered with disasters that it could not be too hard to establish the causes... Fear, greed, loss of corporate memory, weak mana

Describe the term value management, Problem: (a) Describe the term "Va...

Problem: (a) Describe the term "Value Management" and what are the related benefits in applying such principles in a project?  In your opinion, how will Value Management

Top flop division - forecasting methods, Top-flop division is based on the ...

Top-flop division is based on the idea that the demand percentages of the 'top' and the 'flop' SKUs in a group of SKUs are fairly stable over time. For example, the 33% best-sellin

Explain how transactions in the queue are managed, Question: (a) The Ma...

Question: (a) The Mauritius Automated Clearing and Settlement System (MACSS) is the Mauritian Real-time Gross Settlement (RTGS) system. (i) Define the term gross settlement

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd