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BE HONEST VENTURES LIMITED CASH BUDGET - JANUARY TO JUNE, 2021 JAN FEB MAR APR MAY JUN GHS GHS GHS GHS GHS GHS INFLOW Debtors

BE HONEST VENTURES LIMITED

CASH BUDGET - JANUARY TO JUNE, 2021

JAN

FEB

MAR

APR

MAY

JUN

GHS

GHS

GHS

GHS

GHS

GHS

INFLOW

Debtors

633,600

760,320

887,040

1,013,760

1,140,480

1,267,200

Sales

14,256

633,600

760,320

901,296

1,013,760

1,140,480

1,267,200

OUTFLOW

Creditors

380,160

443,520

506,880

633,600

760,320

823,680

Wages

101,376

126,720

152,064

164,736

152,064

139,392

Variable overhead

47,520

57,024

69,696

79,200

79,200

72,864

Fixed overhead

79,200

79,200

79,200

79,200

79,200

79,200

Purchase of plant

47,520

655,776

706,464

807,840

956,736

1,070,784

1,115,136

NET CASH FLOW

(22,176)

53,856

93,456

57,024

69,696

152,064

BALANCE b/f

19,800

(2,376)

51,480

144,936

201,960

271,656

BALANCE c/f

(2,376)

51,480

144,936

201,960

271,656

423,720

Required:

  1. Interpret the cash budget above (Clue: There are some factors to consider when interpreting a cash budget. Use them a your guide). (8 marks)
  2. What does this budget portray?
  3. Advise the best way(s) Be Honest Ventures Limited may use the surpluses.

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