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

Modigliani–miller theorem, The FrontczakCompany is expecting to generate (a...

The FrontczakCompany is expecting to generate (after tax)a Net Income of $250 millionannuallyandindefinitely (in perpetuity), and this amount is paid out annually as dividends. T

Compare the financial system of the mauritius and usa, Question : (a) ...

Question : (a) Compare the financial system of the Mauritius and USA. Give differences between the two systems. (b) One of the facilities given by the financial system is

Financial, Initial investment outlay of $30 million, consisting of $25 mill...

Initial investment outlay of $30 million, consisting of $25 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverabl

Participative budgeting, You are required to provide an essay or report of ...

You are required to provide an essay or report of approx 500 words or less (excluding attachments and references),  accompanied by relevant calculations, in MS Word orPDF format ac

The Cost of Equity Capital and the CAPM, Part II The cost of equity (disco...

Part II The cost of equity (discount rate) can also be determined by using the Capital Asset Pricing Model (CAPM). Calculating the cost of equity using the CAPM model is often mor

Bonds, you buy a car for ths 10000000 to be repaid in 3 years, with annua i...

you buy a car for ths 10000000 to be repaid in 3 years, with annua interest of 12%. preapare a loan amortization table

Calculate the stock rate of distribution, A owns all of the stock of X.  Th...

A owns all of the stock of X.  The stock's basis is $100.  X has a total of current and accumulated earnings and profits of $50.  X distributes $200 cash to A "with respect to his

Fundamentals of Corporate Finance, What is the industry average price-earni...

What is the industry average price-earnings ratio? What is the price-earnings ratio for Ragan, Inc.? Is this the relationship you would expect between the two ratios?

Describe the validity of the modigliani and miller model, Theoretically Mod...

Theoretically Modigliani and Miller (1958) took a fairly straightforward view of the purpose of a company in an economy. They pointed out that companies take cash from providers o

Report of a questionable, Please l have an assignment and l want to send th...

Please l have an assignment and l want to send the document to you so that you will send it to the Tutors on Chegg to help me with it. Can l send it please?

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