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