User Account

All Pages

Prepare a cash budget, Financial Accounting

Assignment Help:
The following information for the six months ended 31 December 2009 relates to the business of Mr N Morris:
a) Opening cash (including bank) balance Rs 1,200

b) Production in units:

2009 2010
Apr May June July Aug Sept Oct Nov Dec Jan Feb
240 270 300 320 350 370 380 340 310 260 250

c) Raw materials used in production cost Rs 5 per unit. Of this 80 percent is paid in the month of production and 20 percent in the month after production.
d) Direct labour cost of Rs 8 per unit are payable in the month of production.
e) Variable expenses are Rs 2 per unit, payable one half in the same month as production and one half in the month following production.
f) Sales at Rs 20 per unit:

2009

Mar Apr May June July Aug Sept Oct Nov Dec
260 200 320 290 400 300 350 400 390 400

Debtors pay their accounts three months after that in which sales are made.
g) Fixed expenses of Rs 400 per month payable each month
h) Machinery costing Rs 2000 to be paid in October 2009.
i) Will receive a legacy of Rs 2500 in December 2009.
j) Drawings to be Rs 300 per month.

Required:
(a) Prepare a cash budget for each of the six months to 31 December 2009, showing the cash balance at the end of each month.
(b) Describe the objectives of budgetary planning and control systems.
(c) Briefly describe the importance of preparing a cash budget.

Related Discussions:- Prepare a cash budget

Principles and concepts of financial accountin, explain the types of princi...

explain the types of principles and concepts of financial accountin

Track traversal, Track traversal: At the end of the learning process, the r...

Track traversal: At the end of the learning process, the robot will return to the packing station. It will then wait for the user input in an in nite loop. Once the user speci es a

Risk and return - issue of debt, Q. Risk and Return - issue of debt? Ra...

Q. Risk and Return - issue of debt? Raising debt finance will raise the gearing and the financial risk of the company while raising equity finance will lower gearing and financ

Prepare a report addressing adjust financial statements, You are the audito...

You are the auditor of a small private company called XYZ Limited. Last year, which was 20X9, the audit went smoothly and every balance on the financial statements was correct. Thi

Financial Management, QUESTION 4: Spanking Clean (Ltd) operate a number of...

QUESTION 4: Spanking Clean (Ltd) operate a number of car washes and auto valet services. The company has experienced a reasonable trading year. They are deciding whether to pay ou

Evaluate weighted average cost of capital, Q. Evaluate Weighted average cos...

Q. Evaluate Weighted average cost of capital? As the investment is an extension of existing activities the risk of the investment will be estimated using the company's current

Division of the trust-trusts laws and accounts, Division of the trust T...

Division of the trust The safeguards consist in the division of the trust funds into portions.  Before this division takes place, the investments are revalued in order to deter

Deferred tax assets and deferred tax liability, Below are excerpts from Saf...

Below are excerpts from Safeway's 2010 Annual Report, including its Consolidated Balance Sheets, a portion of Note E, Lease Obligations, and Note H, Taxes on Income, from the Notes

What are the advantage of limited liability, What are the Advantage of limi...

What are the Advantage of limited liability Advantage of limited liability, though, imposes certain obligations on such companies. To start up a limited company, documents of i

Play money assignment, This assignment requires you to pretend you have $10...

This assignment requires you to pretend you have $10,000 to invest for 4 weeks.  You are to "invest" this money in stocks or mutual funds and to track your investments on a weekly

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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