Question :

(a) Is there a problem, explain? (10 marks)

(b) If there is a problem, suggest ways to fix it. (10 marks)

4. The cash budget for Harry's Hotels for the first three months of next year is as follows: Harry's Hotels Cash Budget (s millions) January February March Total Beginning balance S5 Rcocipts Collections from sales $40 $45 $50 $135 Issue of debenture 25 25 Total receipts S40 SAS $75 $160 Payments Trade suppliers $20 $25 $10 $ $ 85 Wage & benefits 10 12 15 37 Repairs 10 10 New furniture 15 15 Dividend to shareholders 10 10 Income taxes 5 15 Total payments SGO $52 $60 $172 Required (a) Is there a problem? (b) If there is a problem, suggest ways to fix it. 4. The cash budget for Harry's Hotels for the first three months of next year is as follows: Harry's Hotels Cash Budget (s millions) January February March Total Beginning balance S5 Rcocipts Collections from sales $40 $45 $50 $135 Issue of debenture 25 25 Total receipts S40 SAS $75 $160 Payments Trade suppliers $20 $25 $10 $ $ 85 Wage & benefits 10 12 15 37 Repairs 10 10 New furniture 15 15 Dividend to shareholders 10 10 Income taxes 5 15 Total payments SGO $52 $60 $172 Required (a) Is there a problem? (b) If there is a problem, suggest ways to fix it