Ali and Khan have recently won a design ward for their wooden box storage and have established a company, Ak Wooden box Ltd, to commence production of the storage box. The wooden box storage have an innovative design. Abdullah has just read and shout the importance of cash budgets in highlighting the finances required for business speration Consequently, he has asked for your assistance in preparinga cah budget for the first year operations, tram July 2020 to June 202. The following onas been a fome planning meeting with the Khalid Consider the following sales figures for a newly formed company that makes wordenboek Above figures are based on orders that customers have already placed with the comparater considerable and work by the sales team. In order to secure the orders, the sales team had to negotiate payment terms with the customers. Only 15 of customers agreed to pay immediately for the wooden boxes. Of the remaining customers, so agreed to pay after one month and som after two month. Within the wooden box industry it is known that of credit customers pay because they go out of business or dispute the invoice A Wooden box Lad has made the decision to reduce the budgeted cash inflow from the credit customers who should pay after two months to react this fact making the percentage who pay month If the Ak Wooden box Ltd has a labour cost equal to 15% of the material con equal to 35% of the sales value and an overhead cost equal to 30% of the sale Consider that labour is paid one month in areas The material supplier will not allow the Wooden boundary credit as because it is a newly formed company, it has no track record of paying its debes. The supplier of materials is who are that new companies often fail and go out of business thus creating irecoverable debt. Therefore, the supplier is insisting on cash at time of delivery for all materials purchased. However, the Wooden box Utd must buy the materials before they can be made in bors. The material required for production must be purchased and paid for in the month prior to sae. Now let us consider the overhead. Overhead is paid for in the month in which incurred Included in the overhead figures above is an OMR35,000 monthly charge for depreciation Income tax of OMR 1.500 is due to be paid on 20 January 2001 Company is 30,000 shares OMR 2.500bs in the month of September 2000 The company is to pay bonus to worker of OMR 235.000 respectly in the month of Decenber2020 Plant has been ordered and is expected to be received in month of September and paid in March 2021. t will becos OMR 100.000 The cash balance at the beginning of is estimated to be OM32.00 Required: - Prepare a cash baget for the month of 2000 and 21 using MS Excel. Formatting guide Worksheet font The Times Cateyer Derinle Border the man is Icon bordo de formare for amounts Column width: A-38/B.D.F.HULLNP,RTV.X-11/ ICEGUKM.0,05,0.05 Theme colors White Backgrounds Darker 2011 Main Heading Bold, Font Size 12./Sub Heading Bold Font Soe/Theme Colors White Background, Formularing the form for radio Question 2. Ali and Khan have recently won a design award for their wooden box' storage and have established a company, AK Wooden box Ltd, to commence production of the storage box. The 'wooden box storage have an innovative design. Abdullah has just read a newspaper article about the importance of cash budgets in highlighting the finances required for business operations. Consequently, he has asked for your assistance in preparing a cash budget for the first-year operations, from July 2020 to June 2021. The following information has been obtained from a planning meeting with the Khalid: Consider the following sales figures for a newly formed company that makes wooden boxes: July August September October November December January February March April May June OMR OMR OMR OMR OMR OMR OMR OMR OMR OMR 371,700 519,200 726,880 807,120 1,026,600 1,211,388 778,800 691,008 512,120 371,700 302,080 767,000 OMR OMR Sales Above figures are based on orders that customers have already placed with the company after considerable hard work by the sales team. In order to secure the orders, the sales team had to negotiate payment terms with the customers. Only 15% of customers agreed to pay immediately for the wooden boxes. Of the remaining customers, 50% agreed to pay after one month and 50% after two months. Within the wooden box industry it is known that 3% of credit customers never pay (because they go out of business or dispute the invoices) the AK Wooden box Ltd has made the decision to reduce the budgeted cash inflow from the credit customers who should pay after two months to reflect this fact (making the percentage who pay after two month 47%). If the AK Wooden box Ltd has a labour cost equal to 15% of the sales value a material cost equal to 35% of the sales value and an overhead cost equal to 30% of the sales value Consider that labour is paid one month in arrears. The material supplier will not allow the AK Wooden box Ltd any credit as because it is a newly formed company, it has no track record of paying its debts. The supplier of materials is also aware that new companies often fail and go out of business thus creating irrecoverable debt. Therefore, the supplier is insisting on cash at time of delivery for all materials purchased. However, the AK Wooden box Ltd must buy the materials before they can be made into boxes. The materials required for production must be purchased and paid for in the month prior to sale. Now let us consider the overhead. Overhead is paid for in the month in which it is incurred. Included in the overhead figures above is an OMR15,000 monthly charge for depreciation. Income tax of OMR. 8,500 is due to be paid on 20 January,2021. Company issues 30,000 shares @ OMR 2.500bz in the month of September,2020 The company is to pay bonus to worker of OMR 135,000 respectively in the month of Decenber,2020 Plant has been ordered and is expected to be received in month of September and paid in March 2021. It will be cost OMR 100,000. The cash balance at the beginning of is estimated to be OMR 129,400. Required: -Prepare a cash budget for the month of July 2020 to and June 2021 using MS Excel. (10 Marks). Formatting guideline: Worksheet font:- Type = Times of Roman / Category=Number; Decimal places=0 and Use 1,000 separator Border the Statement is using I cone "All borders" Using the formula for calculation / All the cells for amounts Column width: - A=38 / B,D,F,H,J,L,N, P, R,1,V,X = 11 / (C,E,G,1,K, M,0,0,1,U,W = 0.5 Theme colors White, Backgroundi, Darker 20%) Headings: - Main Heading Bold, Font Size 12,/ Sub Heading Bold Font Size 11,/ Theme colors White, Background, Darker 30% / Formula: - Using the formula for calculation Page 5 of 11 Question 2 Ali and Khan have recently won a design award for their wooden box' storage and have established a company, AK Wooden box Ltd, to commence production of the storage box. The wooden box storage have an innovative design. Abdullah has just read a newspaper article about the importance of cash budgets in highlighting the finances required for business operations. Consequently, he has asked for your assistance in preparing a cash budget for the first-year operations, from July 2020 to June 2021. The following information has been obtained from a planning meeting with the Khalid Consider the following sales figures for a newly formed company that makes wooden boxes: July August September October November December January February March April Mas OMRON OMR OMR OMR OMR OMR OMR OMR ONR ONE Sales 371,700 519,200 726,880 807,120 1,025,600 1,211,388 778,800 681,008 512,120 372,700 202,080 753,000 Above figures are based on orders that customers have already placed with the company after considerable hard work by the sales team. In order to secure the orders, the sales team had to negotiate payment terms with the customers. Only 15% of customers agreed to pay immediately for the wooden boxes. Of the remaining customers, 50% agreed to pay after one month and 50% after two months. Within the wooden box industry it is known that 3% of credit customers never pay (because they go out of business or dispute the invoices) the Ak Wooden box Ltd has made the decision to reduce the budgeted cash inflow from the credit customers who should pay after two months to reflect this fact (making the percentage who pay after two month 47%). OVR If the AK Wooden box Ltd has a labour cost equal to 15% of the sales value a material cost equal to 35% of the sales value and an overhead cost equal to 30% of the sales value Consider that labour is paid one month in arrears. The material supplier will not allow the AK Wooden box Ltd any credit as because it is a newly formed company, it has no track record of paying its debts. The supplier of materials is also aware that new companies often fail and go out of business thus creating irrecoverable debt. Therefore, the supplier is insisting on cash at time of delivery for all materials purchased. However, the AK Wooden box Ltd must buy the materials before they can be made into boxes. The materials required for production must be purchased and paid for in the month prior to sale. Now let us consider the overhead. Overhead is paid for in the month in which it is incurred. Included in the overhead figures above is an OMR15,000 monthly charge for depreciation. Income tax of OMR. 8,500 is due to be paid on 20 January,2021. Company issues 30,000 shares @ OMR 2.500bz in the month of September 2020 The company is to pay bonus to worker of OMR 135,000 respectively in the month of Decenber,2020 Plant has been ordered and is expected to be received in month of September and paid in March, 2021. It will be cost OMR 100,000. The cash balance at the beginning of is estimated to be OMR129,400. Required: -Prepare a cash budget for the month of July 2020 to and June 2021 using MS Excel. (10 Marks). Formatting guideline: Worksheet font:- Type = Times of Roman / Category=Number; Decimal places=0 and Use 1,000 separator Border the Statement is using I cone "All borders" Using the formula for calculation / All the cells for amounts Column width: - A=38 / B,D,F,H,J,L,N,P,R,T,V,X = 11 / (C,E,G,1,K,M,0,0,0,0,W = 0.5 Theme colors White, Background1, Darker 20%) Headings: - Main Heading Bold, Font Size 12, / Sub Heading Bold Font Size 11,/ Theme colors White, Background, Darker 30% / Formula: - Using the formula for calculation Question 2. Ali and Khan have recently won a design award for their 'wooden box' storage and have established a company, AK Wooden box Ltd, to commence production of the storage box. The 'wooden box' storage have an innovative design. Abdullah has just read a newspaper article about the importance of cash budgets in highlighting the finances required for business operations. Consequently, he has asked for your assistance in preparing a cash budget for the first-year operations, from July 2020 to June 2021. The following information has been obtained from a planning meeting with the Khalid: Consider the following sales figures for a newly formed company that makes wooden boxes: July August September October November December January February March April May June OMR OMR OMR OMR OMR OMR OMR OMR OMR OMR OMR OMR Sales 371,700 519,200 726,880 807,120 1,026,600 1,211,388 778,800 691,008 512,120 371,700 302,080 767,000 Above figures are based on orders that customers have already placed with the company after considerable hard work by the sales team. In order to secure the orders, the sales team had to negotiate payment terms with the customers. Only 15% of customers agreed to pay immediately for the wooden boxes. Of the remaining customers, 50% agreed to pay after one month and 50% after two months. Within the wooden box industry it is known that 3% of credit customers never pay (because they go out of business or dispute the invoices) the AK Wooden box Ltd has made the decision to reduce the budgeted cash inflow from the credit customers who should pay after two months to reflect this fact (making the percentage who pay after two month 47%). If the AK Wooden box Ltd has a labour cost equal to 15% of the sales value a material cost equal to 35% of the sales value and an overhead cost equal to 30% of the sales value Consider that labour is paid one month in arrears. The material supplier will not allow the AK Wooden box Ltd any credit as because it is a newly formed company, it has no track record of paying its debts. The supplier of materials is also aware that new companies often fail and go out of business thus creating irrecoverable debt. Therefore, the supplier is insisting on cash at time of delivery for all materials purchased. However, the AK Wooden box Ltd must buy the materials before they can be made into boxes. The materials required for production must be purchased and paid for in the month prior to sale. Now let us consider the overhead. Overhead is paid for in the month in which it is incurred. Included in the overhead figures above is an OMR15,000 monthly charge for depreciation. Income tax of OMR. 8,500 is due to be paid on 20 January,2021. Company issues 30,000 shares @ OMR 2.500bz in the month of September, 2020 Page 6 of 11 The company is to pay bonus to worker of OMR 135,000 respectively in the month of Decenber, 2020 Plant has been ordered and is expected to be received in month of September and paid in March 2021. It will be cost OMR 100,000. The cash balance at the beginning of is estimated to be OMR 129,400. Required: - Prepare a cash budget for the month of July 2020 to and June 2021 using MS Excel. (10 Marks). 7 of 11 Formatting guideline: Worksheet font:- Type = Times of Roman / Category=Number; Decimal places and Use 1,000 separator Border the Statement is using Icone "All borders" Using the formula for calculation / All the cells for amounts Column width:- A=38 / B,D,F,H,JL,N, P,R,T,V,X = 11 / (C,E,G,1,K,M,0,0,0,0,W = 0.5 Theme colors White, Background1, Darker 20%) Headings: - Main Heading Bold, Font Size 12, / Sub Heading Bold Font Size 11,/ Theme colors White, Background, Darker 30%/ Formula: - Using the formula for calculation