Essay About Post Graduate Diploma And Cash Budget

Managing Finance and Accounts
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Post Graduate Diploma in Management studies
2003-2004 Year 2
Managing Finance and Accounting
Tutor:
Ian Andrews
Module Title:
Managing Finance and Accounting
Student:
Date:
June 2004
CONTENTS
Cash Budget for July – October
Forecast Productions for three-month period
Actual Production for three-month period
Potential reasons for variation
Recommendations
Prepare a cash budget for the four months July – Oct
Task 2
AUGUST
SEPTEMBER
OCTOBER
RECIEPTS
Capital Introduced
300,000
Debtors
285,000
440,700
567,870
583,110
Total Receipts for the month
585,000
440,700
567,870
583,110
PAYMENTS
LabourWages paid end of each month Ј10 per unit)
95,000
93,000
99,000
100,000
Stock/materials
57,465
164,715
176,370
189,925
Creditors syndicate lenders loan
60,000
60,000
60,000
Overheads
47,500
46,500
49,500
50,000
Depreciation Ј5 per unit
47,500
46,500
49,500
50,000
Administration
28,500
27,900
29,700
30,000
Marketing
19,000
18,600
19,800
20,000
Capital Expenditure
50,000
Total Payments for the month
294,965
457,215
483,870
549,925
Net Cash Flow (receipts less payments)
Bank Balance close of previous month
50,000
340,035
323,520
407,520
Bank Balance
340,035
323,520
407,520
440,705
Forecast Production for three-month Period
Task 3
Activity level (units)
8000
Direct Materials
80,000
100,00
120,000
140,000
160.000
Direct Labour
50,000
62,500
75,000
87,500
100,000
Power
18,000
18,000
18,000
21,000
24,000
Repairs
20,000
22,500
25,000
27,500
30,000
Supervision
20,000
24,000
28,000
32,000
36,000
Rent and rates
9,000
9,000
9,000
9,000
9,000
Insurance
15,000
17,500
20,000
22,500
25,000