a) Peter Blair has worked for some years as a sales representative, but has recently been made redundant He intends to start up in business on his own account, using $13,000 which he currently has invested with a building society Peter maintains a bank account showing a small credit balance, and he plans to approach his bank for the necessary additional finance Peter asks you for advice and provides the following additional information Arrangements have been made to purchase non current assets costing $7,000 These will be paid for at the end of September and are expected to have a five year life, at the end of which they will possess a nil residual value Inventories costing $6,000 will be acquired on 28 September and subsequent monthly purchases will be at a level sufficient to replace forecast sales for the month Forecast monthly sales are $1,500 for October, $3,000 for November, $4500 for December, and $6,000 from January 2021 onwards Selling price is fixed at the cost of inventory plus 50 Two months credit will be allowed to customers but only one months credit will be received from suppliers of inventory Running expenses, including rent but excluding depreciation of non current assets, are estimated at $750 per month Blair intends to make monthly cash drawings of $1,200 Required Prepare a cash budget for the six months to 31 March 2021 b) While running a business, one encounters tons of business operations and chases after multiple vital events and dates to grow and scale up the business Being on top of all business operations and bringing in more opportunities is a must Such actions proliferate, resulting in growth However, some operations may go out of sight as a firm grows, resulting in significant losses Internal Controls is the simple answer to it Internal controls are the processes, regulations, and procedures that a firm puts in place to assure the accuracy of financial and accounting data, encourage accountability, and prevent fraud By performing risk assessment and setting up internal controls can help your business become more efficient Required Discuss how to avoid such losses and save your company from fraudulent activities Please use knowledge of financial management to answer the questions Do not write by hand nor copy and paste randomly Thank you

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a) Peter Blair has worked for some years as a sales representative, but has recently been made redundant. He intends to start up in business

a) Peter Blair has worked for some years as a sales representative, but has recently been made redundant. He intends to start up in business on his own account, using $13,000 which he currently has invested with a building society. Peter maintains a bank account showing a small credit balance, and he plans to approach his bank for the necessary additional finance. Peter asks you for advice and provides the following additional information.

Arrangements have been made to purchase non-current assets costing $7,000. These will be paid for at the end of September and are expected to have a five-year life, at the end of which they will possess a nil residual value.
Inventories costing $6,000 will be acquired on 28 September and subsequent monthly purchases will be at a level sufficient to replace forecast sales for the month.
Forecast monthly sales are $1,500 for October, $3,000 for November, $4500 for December, and $6,000 from January 2021 onwards.
Selling price is fixed at the cost of inventory plus 50%.
Two months credit will be allowed to customers but only one months credit will be received from suppliers of inventory.
Running expenses, including rent but excluding depreciation of non-current assets, are estimated at $750 per month.
Blair intends to make monthly cash drawings of $1,200.

Required:

Prepare a cash budget for the six months to 31 March 2021

b) While running a business, one encounters tons of business operations and chases after multiple vital events and dates to grow and scale up the business. Being on top of all business operations and bringing in more opportunities is a must. Such actions proliferate, resulting in growth. However, some operations may go out of sight as a firm grows, resulting in significant losses. Internal Controls is the simple answer to it. Internal controls are the processes, regulations, and procedures that a firm puts in place to assure the accuracy of financial and accounting data, encourage accountability, and prevent fraud. By performing risk assessment and setting up internal controls can help your business become more efficient.

Required:

Discuss how to avoid such losses and save your company from fraudulent activities?

Please use knowledge of financial management to answer the questions. Do not write by hand nor copy and paste randomly. Thank you.