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Question 5 The figures in the table below relate to HM Furnishing which is seeking your advice on its financial position. 2 0 2 3
Question The figures in the table below relate to HM Furnishing which is seeking your advice on its financial position. Expected Results Budgets November RM December RM January RM February RM March RM April RM Sales Materials Wages Expenses TOTAL COSTS NET PROFITS You are provided with the following additional information: Each month consists of four weeks. of sales are for cash, and on credit. Half the credit customers pay in the month following the month of the sale and the balance two months later. All purchases for materials are on credit and are paid for in the month following the month of the purchase after first deducting a cash discount. Wages are paid one week in arrears. Expenses which include RM for depreciation each month are otherwise paid in the following month. In January the company will purchase a new delivery van for RM less RM trade in on the old van. Payment will be made in the month of purchase and the balance of in March. The bank balance at start of January is expected to be RM No stock of raw materials or finished goods is held. Required: Prepare the months Cash Budget from January to April marks
Question
The figures in the table below relate to HM Furnishing which is seeking your advice on its financial position.
Expected Results Budgets
November
RM December
RM January
RM February
RM March
RM April
RM
Sales
Materials
Wages
Expenses
TOTAL COSTS
NET PROFITS
You are provided with the following additional information:
Each month consists of four weeks.
of sales are for cash, and on credit. Half the credit customers pay in the month following the month of the sale and the balance two months later.
All purchases for materials are on credit and are paid for in the month following the month of the purchase after first deducting a cash discount.
Wages are paid one week in arrears.
Expenses which include RM for depreciation each month are otherwise paid in the following month.
In January the company will purchase a new delivery van for RM less RM trade in on the old van. Payment will be made in the month of purchase and the balance of in March.
The bank balance at start of January is expected to be RM
No stock of raw materials or finished goods is held.
Required:
Prepare the months Cash Budget from January to April marks
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