1. Rich Company Pty Ltd made these estimates for the three months ending 30 June 2010, its first period of operation.

Estimated:

Cash receipts from sales	$300 000
Cash payments for expenses	130 000
Purchase of fixed asset ($5000 will not be paid until August)	20 000
Depreciation of fixed assets	15 000
Repayment of a loan	100 000

What is the estimated cash balance at 30 June 2010?

		a. $40000 surplus
		b. $55000 surplus
		c. $155000 surplus
		d. $50000 surplus
		e. $55000 deficit

2. Gan Ltd is planning to purchase a machine costing $150000. The planned delivery date is 1 December 2013 with settlement on that date. A deposit of $20000 is to be paid on 1 July 2013. The amount that will appear in the cash budget for December 2013 is:

a. $150000 outflow

b. $20000 outflow

c. $130000 outflow

d. $20000 inflow

e. None of the above

3.

The outlay that does NOT appear in the cash budget is:

		a. payment for prepaid interest.
		b. payment of cash dividends.
		c. money borrowed from a moneylender.
		d. an instalment paid for the lease of equipment.
		e. None of the above, i.e. all are included in a cash budget

4.

Sales in December were $960,000. Projected sales for the first quarter of 2009 are: January $1,080,000 February $1,200,000 March $1,280,000

Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.

Calculate the cash collected from debtors for the month of February.

		a. $1,200,000
		b. $864,000
		c. $1,080,000
		d. $960,000