Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please add detailed workings Thank you Question Four a Discuss any five (5) cash control measures that may be taken by management of firms to

image text in transcribed

please add detailed workings Thank you

Question Four a Discuss any five (5) cash control measures that may be taken by management of firms to discourage fraudulent financial activitieswithinorganizations. (5marks) b Differentiate between speculative and transactional motives for holding cash by business organizations. (2marks) C Alfreda Company Ltd presented the following estimates and policies for your perusal for the year 2020 1. Monthly sales andpurchases Month Units Producedandsold Purchases February 5,500atGH12/unit GHC20,000 March 6,800atGHc15/unit GH18,000 April 7,200 atGHc20/unit GH30,000 9,900atGH_25/unit GH32,000 ii. Repairs and maintenance cost is estimated at GH20,400 each month (20% of this amount was estimated fordepreciation), iii. Wages and salaries payable per month is estimated at GH16,000, iv. 60% of all sales are paid promptly by cash and the rest collected asfollows: 1. 80% the month following thesale; 2. The rest, the monthfollowing. V. The company is allowed one month credit for all purchasesmade. vi. The payment plan is asfollows: 1. 60% the month after the creditperiod; GOOD FYG/ABM 5 May 2. The rest payable in the month thatfollows. vii. Commission receivable is expected to be GHc25,200 for April; whiles Insurance payable is GH15,000 permonth. Required: You are required to prepare a Cash Budget for Alfreda Company Ltd covering the months of March April and May, 2020. (13marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions