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

Prepare the journal book, On January 1, 2014, Offshore Corporation erected ...

On January 1, 2014, Offshore Corporation erected a drilling platform at a cost of $5,420,142. Offshore is legally required to dismantle and remove the platform at the end of its 6

Investment with ex. div. quotation-executorship laws, Investment with ex. d...

Investment with ex. div. quotation Investment with ex. div. quotation will be debited to the investment account at its ex. div. value. The full impending dividend will also

Legal practice, Trust - Ancient legal practice where one person (GRANTOR) ...

Trust - Ancient legal practice where one person (GRANTOR) transfers the legal title to an ASSET, known as principal or corpus, to another person (the TRUSTEE), with specific instr

Alternative dispute resolutions, Question 1 a. Contractual liability m...

Question 1 a. Contractual liability may be discharged in certain circumstances. Discuss. b. "An aggrieved party in a breach of contract is entitled to claim for damages"

Market segmentation analysis, Task This task is designed to further dev...

Task This task is designed to further develop your critical analysis and research skills related to the tourism or hospitality enterprise you selected for Assignment 1. You are

Compare the alternatives on a total-annual-cost , The Rohr Company's old eq...

The Rohr Company's old equipment for making subassemblies is worn out. The company is considering two alternatives: a) Completely replacing the old equipment with new equipment

Periodic inventory system, Under this system all stock levels are reviewed ...

Under this system all stock levels are reviewed after fixed time duration, depending upon the significance of the item. Imported items may need a shorter review cycle, while slow m

Evaluate equivalent annual cost, Q. Evaluate Equivalent annual cost? Th...

Q. Evaluate Equivalent annual cost? There are a number of techniques to answering this question and two are presented. The first difficulty is in deciding which broad approach

What is the internal rate of return of the project, Hydroponics is consider...

Hydroponics is considering adding another greenhouse that would cost $95,000 and generate $20,000 in annual net cash flows over its 8 year expected life. What is this project's int

Percent Gain, Assume you invest $150 per month in a stock. Stock prices are...

Assume you invest $150 per month in a stock. Stock prices are as follows: January $10.50, February $9.75, March $9.50, April $11.00, May $10.75, June $9.75, July $9.00, August $8.5

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