Question
For cash budget, given that the business only pays 70% of cost to its suppliers in current quarter, the remaining of 30% is paid in
For cash budget, given that the business only pays 70% of cost to its suppliers in current quarter, the remaining of 30% is paid in the next quarter. For revenue, the business receives 70% of sale revenue within the current quarter, and the rest of 30% is received in the next quarter. All other needed information you can estimate from the companys financial report. In the word file, you should explain how you build the cash budget with relevant information. Then use your completed budget to estimate the following items for the year ending 30 September 2024: (i) The total contribution margin for the year; (ii) The operating profit before tax; (iii) The operating profit after tax; (iv) The net cashflow. Give your comments on these indicators of the selected business. Take a screenshot of cash budget in your answer.
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