Credit Cr CO $25,985 Date June 5 10 15 25 31 Bank Statement 1 June to 30 June Details Debit Balance brought forward Deposit Cheque No. 96 $2,145 Deposit Cheque No. 99 $45.214 Bank Fees $205 Balance $7.520 $33,505 $31,360 $46,561 $1,347 $1,142 Cr $15,201 ar Cr Cr Additional Information: Wendy has a business loan that she look out when she started her business. The loan amount is for $150,000. She has been making repayments quarterly. The interest rate is 5% per annum and is payable quarterly, the next due date being 30 September Wendy has decided that she would like to maintain a minimum bank balance of $5000 at the end of each month. The terms of Wendy's loan agreement allow her to make additional repayments quarterly. The minimum repayment she must make on a quarterly basis is $5000 (which includes the interest); however, she is also able to make additional repayments so that she can pay the loan off sooner. REQUIRED: Complete the cash flow projection for Wendy's Hat's Galore Company as follows: (Note: complete yellow highlighted cells in the stationery for this question) 1. Write in the opening bank balance for July in the correct space. 2. Calculate the interest payable for the quarter on the business loan and write it in the correct space, 3. Complete the cash flow projection for the quarter ended 30 September, if Wendy was only making the mirium repayment. 4. Consider the terms of the loan in regard to the additional repayments. If there is sufficient funds available at the end of the quarter make a decision about the amount that should be included in the cash flow forecast. Write the amount in the loan repayment decision section in the stationery (not including interest). 5. Recalculate and finalise the cash flow projection for the quarter ended 30 September including the new repayment figure. 9 0 1 2 53 54 55 36 67 69 1. Opening bank balance: 0 2. Interest payment 11 12 3. Completed cash flow forecast 13 September 29356 27855 14 15 Wendy's Hat's Galore Company 16 Cash flow forecast for the quarter ended 30 September 17 18 July August 19 20 Cash inflows 21 Receipts from customers 38121 22125 22 LESS Cash outflows 23 Payments to suppliers 27854 21231 24 Interest payments made 25 Loans repaid 26 Net cash flows 27 28 Net increase/decrease in cash 29 Opening cash balance 30 Closing cash balance 31 32 33 4. Loan repayment decision: 34 35 5. Revised cash flow forecast: 36 37 Wendy's Hat's Galore Company 38 Cash flow forecast for the quarter ended 30 September 39 40 July August 41 42 Cash inflows 43 Receipts from customers 38121 22125 44 LESS Cash outflows 45 Payments to suppliers 27854 212314 46 Interest payments made 47 Loans repaid September 29356 27855 July August September 38121 22125 29356 Cash inflows Receipts from customers LESS Cash outflows Payments to suppliers Interest payments made Loans repaid Net cash flows 27854 21231 27855 Net increase/decrease in cash Opening cash balance Closing cash balance 1 2 3 4. Loan repayment decision: 4 55 5. Revised cash flow forecast: 36 37 Wendy's Hat's Galore Company 38 Cash flow forecast for the quarter ended 30 September 39 40 July August 41 42 Cash inflows 43 Receipts from customers 38121 22125 44 LESS Cash outflows 45 Payments to suppliers 27854 21231 46 Interest payments made 47 Loans repaid 48 Net cash flows 49 September 29356 27855 50 Net increase/decrease in cash 51 Opening cash balance 52 Closing cash balance 53 54 55 56 57 58 Credit Cr CO $25,985 Date June 5 10 15 25 31 Bank Statement 1 June to 30 June Details Debit Balance brought forward Deposit Cheque No. 96 $2,145 Deposit Cheque No. 99 $45.214 Bank Fees $205 Balance $7.520 $33,505 $31,360 $46,561 $1,347 $1,142 Cr $15,201 ar Cr Cr Additional Information: Wendy has a business loan that she look out when she started her business. The loan amount is for $150,000. She has been making repayments quarterly. The interest rate is 5% per annum and is payable quarterly, the next due date being 30 September Wendy has decided that she would like to maintain a minimum bank balance of $5000 at the end of each month. The terms of Wendy's loan agreement allow her to make additional repayments quarterly. The minimum repayment she must make on a quarterly basis is $5000 (which includes the interest); however, she is also able to make additional repayments so that she can pay the loan off sooner. REQUIRED: Complete the cash flow projection for Wendy's Hat's Galore Company as follows: (Note: complete yellow highlighted cells in the stationery for this question) 1. Write in the opening bank balance for July in the correct space. 2. Calculate the interest payable for the quarter on the business loan and write it in the correct space, 3. Complete the cash flow projection for the quarter ended 30 September, if Wendy was only making the mirium repayment. 4. Consider the terms of the loan in regard to the additional repayments. If there is sufficient funds available at the end of the quarter make a decision about the amount that should be included in the cash flow forecast. Write the amount in the loan repayment decision section in the stationery (not including interest). 5. Recalculate and finalise the cash flow projection for the quarter ended 30 September including the new repayment figure. 9 0 1 2 53 54 55 36 67 69 1. Opening bank balance: 0 2. Interest payment 11 12 3. Completed cash flow forecast 13 September 29356 27855 14 15 Wendy's Hat's Galore Company 16 Cash flow forecast for the quarter ended 30 September 17 18 July August 19 20 Cash inflows 21 Receipts from customers 38121 22125 22 LESS Cash outflows 23 Payments to suppliers 27854 21231 24 Interest payments made 25 Loans repaid 26 Net cash flows 27 28 Net increase/decrease in cash 29 Opening cash balance 30 Closing cash balance 31 32 33 4. Loan repayment decision: 34 35 5. Revised cash flow forecast: 36 37 Wendy's Hat's Galore Company 38 Cash flow forecast for the quarter ended 30 September 39 40 July August 41 42 Cash inflows 43 Receipts from customers 38121 22125 44 LESS Cash outflows 45 Payments to suppliers 27854 212314 46 Interest payments made 47 Loans repaid September 29356 27855 July August September 38121 22125 29356 Cash inflows Receipts from customers LESS Cash outflows Payments to suppliers Interest payments made Loans repaid Net cash flows 27854 21231 27855 Net increase/decrease in cash Opening cash balance Closing cash balance 1 2 3 4. Loan repayment decision: 4 55 5. Revised cash flow forecast: 36 37 Wendy's Hat's Galore Company 38 Cash flow forecast for the quarter ended 30 September 39 40 July August 41 42 Cash inflows 43 Receipts from customers 38121 22125 44 LESS Cash outflows 45 Payments to suppliers 27854 21231 46 Interest payments made 47 Loans repaid 48 Net cash flows 49 September 29356 27855 50 Net increase/decrease in cash 51 Opening cash balance 52 Closing cash balance 53 54 55 56 57 58