Please help. I need help with a finance question. I need to prepare a cash budget
AutoSave O OFF A A 9 . C 6 9 0 6 ... Document2 Q Home Insert Draw Design Layout References Mailings Review View ? Tell me Share Comments 2- Line Numbers v Indent Spacing Left: 0 cm Before: 0 pt Text Margins Orientation Size Columns Breaks a Hyphenation Position After: Wrap Bring Send Selection Align Group Rotate Direction Right: 0 cm 0 pt Text Forwards Backwards Pane Budgeting Ahead Total budgeted fixed operating expenses for the year are $35 million Fixed costs are accrued evenly through the year. The operating variable costs is determined to be 20% of that month's projected purchases, which accrued On 1 April 2021, POR Pte Ltd is attempting to budget cash flows through 30 June 2021. On 31 May 2021, the evenly with purchases. Both fixed and variable operating expenses are paid in the month incurred. principal of a secured bank loan, $10 million, will be payable. This bank loan was secured at 6% per annum. Cash Interest payment on this loan are settled monthly. An interim tax payable of $1.5 million is due on 30 June 2021. Opening cash balance as at 1 April 2021 is $4 million The company only transact on credit sales. A discount of 5% is given to all customers who pay within one month. 50% of the accounts receivable will be received in the month of sale. 25% will be collected in the following month, and the remaining will be received in the month after next. There is a 5% provision for bad debt for accounts Requirements: receivable in the month after the next. You will be required to write a management report in which the following points should be discussed. Projected and Actual Sales are: Analyse the Investment proposals by using NPV and IRR and provide recommendations. You should also briefly comment on other investment proposal techniques that PQR Pte Ltd may use, and the limitations of Projected Sales Actual Sales using these techniques. January 35,800,000 January 34,900,000 Provide an explanation on the different sources of funding available to the company, and their advantages February 34,000,000 February 34,400,000 and disadvantages and make recommendations as to how these funding sources are appropriate to the March 35,000,000 March 35,200,000 planned investment project. April 36,000,000 April Analyse the level of breakeven required if POR Pte Ltd proceeds with the investment. Prepare a forecasted cash budget for April to June 2020. May 36,600,000 May An evaluation of POR Pte Ltd performance or position during the same period. June 35,500,000 June A detailed Literature Review of the tools you have used such as capital investment techniques, breakeven July 37,000,000 July analysis and budgets and their importance to the business case. For the Year ending 500,000,000 For Year to Date 104,500,000 Other issues for management to consider that you think are vital for them to survive and make a profit. 31 Dec Purchases are made on basis of 60% the following month's projected sales. 40% of the purchases are paid for in the month of purchase, and a 5% prompt settlement discount is received. The remainder is paid in full the following month. Page 2 of 2 456 words English (Singapore) Focus E 150%
