CASE A

Joy and Joy Ventures
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).
2. What does this budget portray?
3. Advise the best way(s) Joy and Joy Ventures may use the surpluses.