The following information relates to Whistle Limited, a company which manufactures

violins for music retailers in Ireland. While the management and staff are very skilled

at making their violins they are lacking in business, management and accounting skills.

The business is owned by a man named Dermot Whistle who is also the managing director.

He is a very difficult man to deal with. He is very demanding and is often prone to bouts

of shouting aggressively at staff if they are not doing what he wants. He expects a high level

of performance from all of his staff including fellow directors every working day. The company does not pay overtime for any additional hours worked by any staff member, but he expects jobs to be completed on time whether or not overtime is required to achieve this.

Dermot owns the building that the company operates from. In the last six months

during the covid period May to October 2020 he arranged without consulting other company

directors to have an extension built onto the premises for his own personal use. This extension

cost 165,000. Dermot paid a cheque from Whistle Limited for 45,000 up front in July

and he intends to pay the balance of 120,000 to the builder over the six-month period January to June 2021. He has told you to put in 20,000 each month in the budget from January to June and put it under the category repairs to premises.

Last February 2020 Dermot hired an expert to help in the making of a new style of violin

which has become popular in music circles in Australia and Dermot is anxious that Whistle Ltd will be the pioneers in manufacturing this new style of violin in Ireland. The expert has worked hard training some of the Irish staff at Whistle Ltd. in making this new violin.

Dermot has instructed you to pay cash to this employee and not to put them through the payroll like all the other staff. He is to be paid 1,500 cash every week for the foreseeable future. He also instructed you that if the other directors asked you how much he was earning you were to say 500 per week and not to say anything about the fact that he was not on the payroll. You have since found out that this expert is actually Dermots son who has come back after working for the last five years in a music shop in Australia. All other staff members in Whistle Ltd. earn 500 per week and are taxed through the payroll.

Dermot also told you to put in 2,000 every month in the budget for clothes / suits etc. for himself and he will pay for this using his company american express card which the other directors are not aware of. He also told you to put this under the category of cleaning and maintenance in the payments section of the budget for Jan to June 2021.

Dermot has also instructed you to pay the window cleaners, office cleaners and receptionist in cash. The office cleaner is Dermots brother-in-law Sam and reception is covered by Dermots daughter Anne.

Apart from the details above Dermot has asked you to prepare a monthly cash budget

for the 6 months from January to June 2021 for Whistle Ltd. Dermot is anxious to

see what the cashflow is like for the first half of 2021 as he has a very large number of

orders to fill in the coming months and believes cashflow should be excellent.

All the companys customers are well known to Dermot and he is happy to give credit

to most of them for the sales of his instruments.

You are the new financial controller and as well as the above you have been given the

following information by Dermot to enable you to forecast the cashflow over the six month

period January to June 2021.

Sales Information:

1. The selling price of the violin is 200.

(b) Quantities sold (in units) on credit will be as follows:

Nov20 Dec20 Jan Feb March April May June

1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,600

(c) Credit sales customers are given TWO months to pay their bills.

(d) Cash sales are expected to be 100 units per month.

(these sales are separate to the above credit sales)

Production Information:

(e) The production cost of the companys product is 100 made up as follows:

Materials 30 per unit

Labour 50 per unit

Variable Overhead 20 per unit

Production quantities (in units) are as follows:

Nov Dec Jan Feb March April May June

1,200 1,400 1,600 2,000 2,400 2,600 2,400 2,200

(f) Materials are paid for TWO months after they have been purchased.

(g) Labour is paid in the same month as it is incurred.

(h) Variable overheads are paid in the same month as they are incurred.

Other business costs:

(i) A bank Loan of 25,000 is to be repaid in April 2021.

(j) A company van will be bought in Jan.2021 for 8,000. It will be paid for in April 2021.

(k) Fixed costs are 15,000 every month.

(l) Whistle Ltd. is expected to be 24,000 overdrawn in the bank on 1^st January 2021.

(m) Cleaning & maintenance will be 2,000 each month from January to June 2021.

(n) Repairs to premises will be 20,000 each month from January to June 2021.

You are required to prepare a REPORT to the Board of Directors which deals

with the points in (a) to (c) below:

1. Construct a cash budget for Whistle Ltd for the six month

period January to June 2021 showing clearly the cash at bank

position at the end of each month, include a total column.

This budget MUST be done using an EXCEL spreadsheet. (25 marks)

2. Comment on your results and suggest Ten ways in which

Whistle Ltd. could improve the cash situation going forward.

Your answer should include a mixture of quantitative and

qualitative points.

Please use WORD to complete this section. No more than

300 words.

(15 Marks)

3. Discuss in detail whether (in your opinion) you think the management

of Whistle Ltd are running this business in an honest and professional

manner. Detail any ethical issues you have identified in this case

and explain what you might do in your capacity as the new financial

controller to highlight these issues and provide some advice to both Dermot

and the board of directors.

Please use WORD to complete this section. No more than 600 words

File TOOS Wies BAES BAAF ZAIM Assignmem sem 1 2000 21 (1) Compatible Model - Word BABS 2 / DAAF 2 ACCOUNTING INFORMATION FOR MANAGERS Apunt from the details above Demo has asked you to prepare a monthly cash budget for the mers from January to June 2021 for Whistle Ltd. Dermot is tocs to See what the cashflow is like for the first half of 2021 she has a very large number of orders to fill in the coming months and believes caillow should be excellent. All the company's customers are well known to Dermot and he is happy to ne credut to most of them in the area of intents You are required to prepare a REPORT to the Board of Director's which deals with the points in (a) to (c) helow: ASSIGNMENT - Semester 120202 You are the new financial controller and as well as the above you have been given the following information by Dermot to enable you to forecast the castelow orter the six month punto June 2021 (3) Conta cashbudovt for White Lied for the sixth periody to June 2011 showing clearly the cathark position at the end of each month, include a total column. This budget ALUST be done using an EXCEL spreadsheet. maak) Sales Information: (a) The selling price of die violin is 200. th) Queenities sold in unit) on croit will be s follow Nov20 Dec20 Jan Feb March April April May June 1,000 1,200 1,400 1,600 1 800 2,000 2,200 2.600 (c) Credit sales customers ze giren Two months to pay their bella (a) Cash sales an expected to be 100 unts per month (these sales are separate to the above credit sales) Production Information: QUESTION 1: The following monarcates to Whistle Limited communy wioch mestu viola's fit music netala meland Whik there and staff are vezy skilled at making their violins they are lacking a business management and accoustic skills The business is owned by a man camed Demut Wastle who is also the managing durecko Hos a very dificult man to deal with. He is very demanding and is often prone to bouts of showing appressively at staff if they are not doing what he wants. He experts a high level of performance from all of his stafi including fellow directors every working day. The com- pay does not pay orertime for any additional bours worked by any stat membes, but he expects jobs to be completed ce time whether or not overtime is required to achieve this Damnat was the building that the ceny pases cum. In de las six months during the covid period May to October 2020 be arranged without consulting other company duccions to have to built onto the stunts for lus own personal use. This e- SUOT poate10.cog. Dermot paid a chance from Whistle Limited for t45 000 up front in July and be intends to pay the balance of 120,000 to the builder over the six-month period Jaru- ary to June 2001. He has "old vos" to put in 20,000 each month in the budget from January to June and put it under the category repairs to premises. Le Forum 2030 Demuthal expert to help me making of a new style of solin which has become popular in music circles in Australia and Denmet is anxious that Whistle Ltd will be the pioneers is manufacturing this new style of violin in (reland. The expect has worked isad taimg some of the installat White Lid. in making to grow solu. Dermot has instructed you to pay cada to this employee and not to put them through the parell like all the other staff He is to be paid 1 500 crah mery week for the foreseeable future. He also instructed you that if the other durectors asked you how much he was earning you were to sav E500 per week and not to say anything about the fact that be was not on the yoll You have sikefond out that this expert" in chilly Desmots som who has come 1:ackal work for the last five years in a music shop in Australia All other staff.18 in Whistle Ltd earnesco per week and are taxed through the payroll Dermot also told you to put in 2,000 miery month in the budget for clothes/ suitsete for himself and he will pay for this using his company american express card which the other durectors are not aware of He also told you to put this wade the calenty of cleaning and mancance m the payments section of the budget for Jan to June 2021. Dermot har also insured you to pay the window cleane's office cleaners and receptes in cash The office cleaner i Dermat's brether-in-law Som and magnion is owned to De mct's daughter Anne th) Comment on your results and seest Ten ways in which Whistle Ltd. could improve the cash situation goung forward You an ner should include a mixture of qualitative and que point Plesze use WORD to complete this section. No more titan S00 nord (15 Mak C) Discuss in detail whether in your opinion) you think the management of whistle Lad are numing this business is an beste professional mener. Detailary etlucal issues you have identified in this case and explain what you might do in your capacity as the new finaccial controller to highlight these and provide some advice to both Dermat and the end of dicke Plezse use WORD to complete this section. No more than 800 words. (10 Marks) (e) The great cast of the company's product clon made up as follows Materials 30 per unit Labout C 50 patel Variable Overhead co per unit Producten quantes (in wuls) are as follows Nury Der Jan Feb March April May June 1,200 1,400 1,600 2.000 2.100 2.500 2,400 2,200 1 Malala and for TWO months aller they have been purchase. Labour is paid in the same months as it is incurred. Variable orebeads are paid in the same much as they are incred. Other business costs: 0 A bank Lom c 25.000 is to be repaid in April 2001. A company van will be bought in Jan 2021 for EX.000. It will be paid for in April 2021 2) Fixed costs are 15,000 every month. (1) Whistle 14. 18 espersed to be C4 on overdrawn the hanik on 1 Jary 2021 (m) Cleaning & matce will be 2,000 wach math froen January to June 2021 (1) Rupam to press will be 30.000 sachet financy to June 2021 QUESTION Sun 18 + 110 20 AM 12.4.2123 Type here to search O E. 03 * File TOOS Wies BAES BAAF ZAIM Assignmem sem 1 2000 21 (1) Compatible Model - Word BABS 2 / DAAF 2 ACCOUNTING INFORMATION FOR MANAGERS Apunt from the details above Demo has asked you to prepare a monthly cash budget for the mers from January to June 2021 for Whistle Ltd. Dermot is tocs to See what the cashflow is like for the first half of 2021 she has a very large number of orders to fill in the coming months and believes caillow should be excellent. All the company's customers are well known to Dermot and he is happy to ne credut to most of them in the area of intents You are required to prepare a REPORT to the Board of Director's which deals with the points in (a) to (c) helow: ASSIGNMENT - Semester 120202 You are the new financial controller and as well as the above you have been given the following information by Dermot to enable you to forecast the castelow orter the six month punto June 2021 (3) Conta cashbudovt for White Lied for the sixth periody to June 2011 showing clearly the cathark position at the end of each month, include a total column. This budget ALUST be done using an EXCEL spreadsheet. maak) Sales Information: (a) The selling price of die violin is 200. th) Queenities sold in unit) on croit will be s follow Nov20 Dec20 Jan Feb March April April May June 1,000 1,200 1,400 1,600 1 800 2,000 2,200 2.600 (c) Credit sales customers ze giren Two months to pay their bella (a) Cash sales an expected to be 100 unts per month (these sales are separate to the above credit sales) Production Information: QUESTION 1: The following monarcates to Whistle Limited communy wioch mestu viola's fit music netala meland Whik there and staff are vezy skilled at making their violins they are lacking a business management and accoustic skills The business is owned by a man camed Demut Wastle who is also the managing durecko Hos a very dificult man to deal with. He is very demanding and is often prone to bouts of showing appressively at staff if they are not doing what he wants. He experts a high level of performance from all of his stafi including fellow directors every working day. The com- pay does not pay orertime for any additional bours worked by any stat membes, but he expects jobs to be completed ce time whether or not overtime is required to achieve this Damnat was the building that the ceny pases cum. In de las six months during the covid period May to October 2020 be arranged without consulting other company duccions to have to built onto the stunts for lus own personal use. This e- SUOT poate10.cog. Dermot paid a chance from Whistle Limited for t45 000 up front in July and be intends to pay the balance of 120,000 to the builder over the six-month period Jaru- ary to June 2001. He has "old vos" to put in 20,000 each month in the budget from January to June and put it under the category repairs to premises. Le Forum 2030 Demuthal expert to help me making of a new style of solin which has become popular in music circles in Australia and Denmet is anxious that Whistle Ltd will be the pioneers is manufacturing this new style of violin in (reland. The expect has worked isad taimg some of the installat White Lid. in making to grow solu. Dermot has instructed you to pay cada to this employee and not to put them through the parell like all the other staff He is to be paid 1 500 crah mery week for the foreseeable future. He also instructed you that if the other durectors asked you how much he was earning you were to sav E500 per week and not to say anything about the fact that be was not on the yoll You have sikefond out that this expert" in chilly Desmots som who has come 1:ackal work for the last five years in a music shop in Australia All other staff.18 in Whistle Ltd earnesco per week and are taxed through the payroll Dermot also told you to put in 2,000 miery month in the budget for clothes/ suitsete for himself and he will pay for this using his company american express card which the other durectors are not aware of He also told you to put this wade the calenty of cleaning and mancance m the payments section of the budget for Jan to June 2021. Dermot har also insured you to pay the window cleane's office cleaners and receptes in cash The office cleaner i Dermat's brether-in-law Som and magnion is owned to De mct's daughter Anne th) Comment on your results and seest Ten ways in which Whistle Ltd. could improve the cash situation goung forward You an ner should include a mixture of qualitative and que point Plesze use WORD to complete this section. No more titan S00 nord (15 Mak C) Discuss in detail whether in your opinion) you think the management of whistle Lad are numing this business is an beste professional mener. Detailary etlucal issues you have identified in this case and explain what you might do in your capacity as the new finaccial controller to highlight these and provide some advice to both Dermat and the end of dicke Plezse use WORD to complete this section. No more than 800 words. (10 Marks) (e) The great cast of the company's product clon made up as follows Materials 30 per unit Labout C 50 patel Variable Overhead co per unit Producten quantes (in wuls) are as follows Nury Der Jan Feb March April May June 1,200 1,400 1,600 2.000 2.100 2.500 2,400 2,200 1 Malala and for TWO months aller they have been purchase. Labour is paid in the same months as it is incurred. Variable orebeads are paid in the same much as they are incred. Other business costs: 0 A bank Lom c 25.000 is to be repaid in April 2001. A company van will be bought in Jan 2021 for EX.000. It will be paid for in April 2021 2) Fixed costs are 15,000 every month. (1) Whistle 14. 18 espersed to be C4 on overdrawn the hanik on 1 Jary 2021 (m) Cleaning & matce will be 2,000 wach math froen January to June 2021 (1) Rupam to press will be 30.000 sachet financy to June 2021 QUESTION Sun 18 + 110 20 AM 12.4.2123 Type here to search O E. 03 *