PLEASE DO THAT QUESTION ON UK FORMAT

Week 11: Lecture Question Budgeting (Accounting and Finance an introduction, 10" Ed, E. McLaney & P. Atrill) Prolog Ltd is a small wholesaler of high-specification personal computers. It has in recent months been selling 50 machines a month at a price of 2,000 each. These machines cost 1,600 each. A new model has just been launched and this is expected to offer greatly enhanced performance. Its selling price and cost will be the same as for the old model, From the beginning of January, sales are planned to increase at a rate off 20 machines each month until the end of June, when sales will amount to 170 units a month, Sales are planned to continue at that level thereafter. Operating costs including depreciation of 2,000 a month are planned as follows: Apr Jan 6 Feb Mar 8 10 May Jun 12 Operating costs ('000) 12 12 Prolog expects to receive no credit for operating costs. Additional shelving for storage will be bought, installed and paid for in April, costing 12,000. Tax of 25,000 is due at the end of March Prolog anticipates that trade receivables will amount to two months' sales revenue. To give its customers a good level of service, Prolog plans to hold enough inventories at the end of each month to fulfil anticipated demand from customers in the following month. The computer manufacturer, however, grants one month's credit to Prolog Prolog Ltd's statement of financial poslanis Statement of Financial Position as at 31 December 000 ASSETS Non-current assets Current assets Inventories Trade receivables Cinh Total assets Equity and liabilities Equity Share capital (25p ordinary shares) Retained profit Current abilities Trade payables Taxation Overdraft Total equity and liabilities BO 28. ad and 112 25 205 292 Cash 312 Total assets 392 Equity and liabilities Equity Share capital (25p ordinary shares) 10 Retained profit 177 187 Current liabilities Trade payables 112 Taxation 25 Overdraft 68 205 Total equity and liabilities 392 Required: (a) Prepare a cash budget for Prolog Ltd showing the cash balance or required overdraft for the six months ending 30 June (b) State briefly what further information a banker would require from Prolog Ltd before granting additional overdraft facilities for the anticipated expansion of sales. Week 11: Lecture Question Budgeting (Accounting and Finance an introduction, 10" Ed, E. McLaney & P. Atrill) Prolog Ltd is a small wholesaler of high-specification personal computers. It has in recent months been selling 50 machines a month at a price of 2,000 each. These machines cost 1,600 each. A new model has just been launched and this is expected to offer greatly enhanced performance. Its selling price and cost will be the same as for the old model, From the beginning of January, sales are planned to increase at a rate off 20 machines each month until the end of June, when sales will amount to 170 units a month, Sales are planned to continue at that level thereafter. Operating costs including depreciation of 2,000 a month are planned as follows: Apr Jan 6 Feb Mar 8 10 May Jun 12 Operating costs ('000) 12 12 Prolog expects to receive no credit for operating costs. Additional shelving for storage will be bought, installed and paid for in April, costing 12,000. Tax of 25,000 is due at the end of March Prolog anticipates that trade receivables will amount to two months' sales revenue. To give its customers a good level of service, Prolog plans to hold enough inventories at the end of each month to fulfil anticipated demand from customers in the following month. The computer manufacturer, however, grants one month's credit to Prolog Prolog Ltd's statement of financial poslanis Statement of Financial Position as at 31 December 000 ASSETS Non-current assets Current assets Inventories Trade receivables Cinh Total assets Equity and liabilities Equity Share capital (25p ordinary shares) Retained profit Current abilities Trade payables Taxation Overdraft Total equity and liabilities BO 28. ad and 112 25 205 292 Cash 312 Total assets 392 Equity and liabilities Equity Share capital (25p ordinary shares) 10 Retained profit 177 187 Current liabilities Trade payables 112 Taxation 25 Overdraft 68 205 Total equity and liabilities 392 Required: (a) Prepare a cash budget for Prolog Ltd showing the cash balance or required overdraft for the six months ending 30 June (b) State briefly what further information a banker would require from Prolog Ltd before granting additional overdraft facilities for the anticipated expansion of sales