a) Explain the role of Management Accounting in planning and controlling process of the affairs of an organisation by Managers

b) You are presented with following information forecasted cash flow data for your organisation for the period November 2017 to June 2018. It has been extracted from functional flow forecasts that have already been prepared.

Nov Dec Jan Feb Mar Apr May June

$' 000

Sales 82 105 116 130 142 150 160 184

Purchases 45 61 83 95 111 133 141 151

Wages 10 12 16 20 24 28 32 36

Overheads 12 13 15 16 17 20 24 24

Dividend Declared 22 45

Capital Expenditure 32 44

You are also told the following

1. Sales are 40% cash and 60% credit . Credit Sales are paid two months after the month of sale.

2. Purchases are paid the month following purchase

3. 70% of wages are paid in the current month and 30% the following month.

4. Overheads are paid the month after they are incurred .

5. Dividends are paid three months after they are declared . $ 10,000 dividend were declared in October 2017.

6. Capital Expenditure is paid two months after is incurred. Th expenditure for October 2017 was $ 12,000

7. The Opening cash balance is $ 50,000.

Required

a) Prepare a cash flow forecast for the six-month period January to June 2018.

b) Explain the accruals concept and historical concept and their implication on the financial Statements.