Integrated problem-Practice for Online Test- 25th October The Question. Scenario You have a small business engaged in the retail sale of ladies and gentlemen's fashions. An accounting year-end is 31st December, and it is now 1st January 2019. Information included on the Statement of Financial Position at 31st December 2018 was as follows: The shop fixtures and fittings are depreciated on a 10% straight-line basis and there is no scrap value. You are preparing a business plan for the following three months from January to March 2019. The plan will include a Cash Flow forecast, a forecast Income Statement and a forecast Statement of Financial Position. You predict the following: 11000 Trade receivables (due to be received in January 2019) Trade receivables (due to be received in February 2019) Trade payables (due to be paid in January 2019) 9000 3000 11000 9000 3000 Trade receivables (due to be received in January 2019) Trade receivables (due to be received in February 2019) Trade payables (due to be paid in January 2019) Closing inventories Cash at bank Share capital Retained profits/losses brought forward Dividend payable (due to be paid in January 2019) Taxation payable (due to be paid in January 2019) Shop fixtures and fittings at cost Depreciation on shop fixtures and fittings Long-term loan 2000 32400 17000 40300 2300 800 50000 25000 16000 . Your motor vehicle running expenses will total 540 per month and are payable in the month in which they are incurred. Other expenses will be 2100 a month payable in the month in which they occur. You are going to buy a delivery van for the business in January at a cost of 16000 for cash. You will depreciate the van on a 20% straight-line basis. The scrap value of the van is expected to be 4000 at the end of its useful economic life. The tax charge for the three months to 31st March 2019 will be 16552 but this will not be paid until May 2019. A dividend of 900 was proposed to cover the three months, January to March 2019 but this will not be paid until April 2019. Interest on the bank loan is expected to be 80 a month. Closing inventory at 31st March 2019 is expected to be 6200. . . Styles Question 1 You predict that sales for January 2019 are expected to be 50000 increasing by 20% in February 2019 and by a further 8% in March 2019. Also, only 80% of your customers pay cash and the remaining 20% are given 2 month credit. Fill in the following table (Sales Working 1). All numbers must be entered as whole numbers. Enter "0" in a cell if, in any month, there are no sales. The same applies to cash sales receipts, credit sales receipts and trade receivables b/t. Jan Feb Sales W1 ('s) Total Sales March Total Cash sales receipts Credit sales receipts Trade receivables 16/f Total cash receipts Question 2 In addition to the above information, you predict that purchases are expected to be 50% of sales and that you take on average 1 month credit from your suppliers. Fill in the following table (Purchases Working 2). All numbers must be entered as whole numbers. Enter "o" in a cell it, in any month, there are no credit purchases payments. The same applies to trade payables b/f. Jan Feb March Total Purchases W2 ('s) Total Purchases Credit purchases payments Trade payables b/f Total cash paid Question 3 Prepare a cash flow forecast for the three months to 31st March 2019. Enter "0" in a cell if, in any month, there are no cash receipts/cash payments. Trendy Clothing Ltd. Cash Flow Forecast for the three months period from 1 January to 31 March 2019 Jan CASH IN / RECEIPTS (E's) Sales W1 Feb March Total Rental Income Total Receipts CASH OUT / PAYMENT Revenue expenses Purchases W2 Dividend Other expenses Interest Motor Expenses Tax Van Total Payments Net Receipts Opening Balance Closing Balance Question 4 Prepare a forecast income statement for the three month period to 31st March 2019 Trendy Clothing Ltd, Forecast Income Statement for the three months from 1 January to 31 March 2019 e Sales Revenue Less: Cost of Sales Opening Inventory Purchases Closing Inventory Gross Profit Other income Less Revenue Expenditure other expenses Motor expenses Depreciation on fixtures and fittings Depreciation on van Total Revenue Expenditure Operating Profit (PBIT) Finance costs Interest Paid Profit/ Loss before tax Taxation Profit for the period Question 5 Prepare a forecast statement of financial position as at 31st March 2010: Trendy Clothing Ltd, Forecast Statement of Financial Position as at 31 March 2019 Non-Current Assets Fixtures & fittings Net Book Value Ivan Total Non-Current Assets Current Assets Inventory Trade Receivables Cash Total Current Assets Total Assets Equity Share Capital Retained profits/losses Total Equity Non-Current Liabilities Borrowings - Bank Loan Current Liabilities Trade payables Dividend payable Taxation Payable Total Current Liabilities Total Equity and Liabilities Integrated problem-Practice for Online Test- 25th October The Question. Scenario You have a small business engaged in the retail sale of ladies and gentlemen's fashions. An accounting year-end is 31st December, and it is now 1st January 2019. Information included on the Statement of Financial Position at 31st December 2018 was as follows: The shop fixtures and fittings are depreciated on a 10% straight-line basis and there is no scrap value. You are preparing a business plan for the following three months from January to March 2019. The plan will include a Cash Flow forecast, a forecast Income Statement and a forecast Statement of Financial Position. You predict the following: 11000 Trade receivables (due to be received in January 2019) Trade receivables (due to be received in February 2019) Trade payables (due to be paid in January 2019) 9000 3000 11000 9000 3000 Trade receivables (due to be received in January 2019) Trade receivables (due to be received in February 2019) Trade payables (due to be paid in January 2019) Closing inventories Cash at bank Share capital Retained profits/losses brought forward Dividend payable (due to be paid in January 2019) Taxation payable (due to be paid in January 2019) Shop fixtures and fittings at cost Depreciation on shop fixtures and fittings Long-term loan 2000 32400 17000 40300 2300 800 50000 25000 16000 . Your motor vehicle running expenses will total 540 per month and are payable in the month in which they are incurred. Other expenses will be 2100 a month payable in the month in which they occur. You are going to buy a delivery van for the business in January at a cost of 16000 for cash. You will depreciate the van on a 20% straight-line basis. The scrap value of the van is expected to be 4000 at the end of its useful economic life. The tax charge for the three months to 31st March 2019 will be 16552 but this will not be paid until May 2019. A dividend of 900 was proposed to cover the three months, January to March 2019 but this will not be paid until April 2019. Interest on the bank loan is expected to be 80 a month. Closing inventory at 31st March 2019 is expected to be 6200. . . Styles Question 1 You predict that sales for January 2019 are expected to be 50000 increasing by 20% in February 2019 and by a further 8% in March 2019. Also, only 80% of your customers pay cash and the remaining 20% are given 2 month credit. Fill in the following table (Sales Working 1). All numbers must be entered as whole numbers. Enter "0" in a cell if, in any month, there are no sales. The same applies to cash sales receipts, credit sales receipts and trade receivables b/t. Jan Feb Sales W1 ('s) Total Sales March Total Cash sales receipts Credit sales receipts Trade receivables 16/f Total cash receipts Question 2 In addition to the above information, you predict that purchases are expected to be 50% of sales and that you take on average 1 month credit from your suppliers. Fill in the following table (Purchases Working 2). All numbers must be entered as whole numbers. Enter "o" in a cell it, in any month, there are no credit purchases payments. The same applies to trade payables b/f. Jan Feb March Total Purchases W2 ('s) Total Purchases Credit purchases payments Trade payables b/f Total cash paid Question 3 Prepare a cash flow forecast for the three months to 31st March 2019. Enter "0" in a cell if, in any month, there are no cash receipts/cash payments. Trendy Clothing Ltd. Cash Flow Forecast for the three months period from 1 January to 31 March 2019 Jan CASH IN / RECEIPTS (E's) Sales W1 Feb March Total Rental Income Total Receipts CASH OUT / PAYMENT Revenue expenses Purchases W2 Dividend Other expenses Interest Motor Expenses Tax Van Total Payments Net Receipts Opening Balance Closing Balance Question 4 Prepare a forecast income statement for the three month period to 31st March 2019 Trendy Clothing Ltd, Forecast Income Statement for the three months from 1 January to 31 March 2019 e Sales Revenue Less: Cost of Sales Opening Inventory Purchases Closing Inventory Gross Profit Other income Less Revenue Expenditure other expenses Motor expenses Depreciation on fixtures and fittings Depreciation on van Total Revenue Expenditure Operating Profit (PBIT) Finance costs Interest Paid Profit/ Loss before tax Taxation Profit for the period Question 5 Prepare a forecast statement of financial position as at 31st March 2010: Trendy Clothing Ltd, Forecast Statement of Financial Position as at 31 March 2019 Non-Current Assets Fixtures & fittings Net Book Value Ivan Total Non-Current Assets Current Assets Inventory Trade Receivables Cash Total Current Assets Total Assets Equity Share Capital Retained profits/losses Total Equity Non-Current Liabilities Borrowings - Bank Loan Current Liabilities Trade payables Dividend payable Taxation Payable Total Current Liabilities Total Equity and Liabilities