Case Study

Cashflowanalysis- Report

This report analyses the income and expenditure oftheThairestaurantThaiNumber One ,over a2month period.This monitors income and expenditures to ensure funds are available. GST is included in the receipts and expenses in a cash flow receipt.

February

March

Receipts (Sales )

243,038

341,976

Payments

Salaries

30,335

34,899

Rent

20,103

24,786

Telephone

5,490

10,004

Bank charges

302

412

Purchases

115,100

17,996

Advertising

8,032

9,191

GST paid

8,419

10,732

187,781

108,020

Monthly cash flow

55,257

233,958

Add balance brought forward

42,968

98,225

Balance at end of month

98,225

332,181

Answer the following questions

1Analyse the cash flow in the previous example.

2Work out what percentage of sales the expenses are foreach month

3What percentage of expenses are the salaries, purchases, and rent for each month ?

4Explain how budgets are used to allocate resources for a business

5Explainfourbenefits ofbudgeting for the ThaiNumber one Restaurant