You have now been asked to work with a textile startup business that your firm has just taken on as a client The business is particularly in need of support and guidance with budgeting and how it can be used to inform efficient resource allocation and support effective control and decision making The founder of the business is investing 100,000 Dhs of their own capital and has also secured a business loan of 50,000 Dhs Following is the RAW data to help produce the budget CASH BUDGET F OF 'ON CUE CLOTHING CO LTD ' Month Sales volume (qty) Purchases Wages Marketing expenses Rent January 8000 45000 20000 10000 20000 February 8000 42000 18000 12000 20000 March 7500 40000 22000 16000 20000 April 9200 38000 24000 8000 20000 May 8500 50000 20000 10000 20000 June 9000 45000 26000 6000 20000 July 8600 46000 20000 6500 20000 August 8000 40000 28000 12000 20000 September 6800 52000 18000 18000 20000 October 7900 39000 22000 8000 20000 November 8200 36000 26000 8500 20000 December 9400 40000 16000 12000 20000 The price per unit is 14 Dhs (sales revenue sales volume price per unit) OPENING BALANCE OF JANUARY MONTH IS 22000 ADDITIONAL INFORMATION Production of a 12 month cash budget that makes use of variance analysis to show the impact of the different individual scenarios below 1 discounting prices by 20 percent, which in turn increases sales volume per month by 10 percent 2 increasing the marketing budget by 10 percent per month 3 offering suppliers one months trade credit 4 reducing rental property related costs by 15 percent per month You have been asked to prepare a memorandum that includes the following Production of a 12 month cash budget that makes use of variance analysis to show the impact of the different individual scenarios below discounting prices by 20 percent, which in turn increases sales volume per month by 10 percent increasing the marketing budget by 10 percent per month, which in turn generates an additional 20 percent in sales revenue offering suppliers one months trade credit reducing rental property related costs by 15 percent per month

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You have now been asked to work with a textile startup business that your firm has just taken on as a client. The business is

You have now been asked to work with a textile startup business that your firm has just taken on as a client. The business is particularly in need of support and guidance with budgeting and how it can be used to inform efficient resource allocation and support effective control and decision making. The founder of the business is investing 100,000 Dhs. of their own capital and has also secured a business loan of 50,000 Dhs. Following is the RAW data to help produce the budget:

CASH BUDGET F OF 'ON CUE CLOTHING CO. LTD.'
Month	Sales volume (qty)	Purchases	Wages	Marketing expenses	Rent
January	8000	45000	20000	10000	20000
February	8000	42000	18000	12000	20000
March	7500	40000	22000	16000	20000
April	9200	38000	24000	8000	20000
May	8500	50000	20000	10000	20000
June	9000	45000	26000	6000	20000
July	8600	46000	20000	6500	20000
August	8000	40000	28000	12000	20000
September	6800	52000	18000	18000	20000
October	7900	39000	22000	8000	20000
November	8200	36000	26000	8500	20000
December	9400	40000	16000	12000	20000

§The price per unit is 14 Dhs.
(sales revenue = sales volumeû price per unit)
§ OPENING BALANCE OF JANUARY MONTH IS 22000/-
ADDITIONAL INFORMATION:
Production of a 12-month cash budget that makes use of variance analysis to show the impact of the different individual scenarios below: 1. discounting prices by 20 percent, which in turn increases sales volume per month by 10 percent 2. increasing the marketing budget by 10 percent per month. 3. offering suppliers one month’s trade credit 4. reducing rental/property-related costs by 15 percent per month.

You have been asked to prepare a memorandum that includes the following.

Production of a 12-month cash budget that makes use of variance analysis to show the impact of the different individual scenarios below:
1. discounting prices by 20 percent, which in turn increases sales volume per month by 10 percent
2. increasing the marketing budget by 10 percent per month, which in turn generates an additional 20 percent in sales revenue
3. offering suppliers one month’s trade credit
4. reducing rental/property-related costs by 15 percent per month.

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Solutions 1 Scenario 1 Discounting prices by 20 percent which in turn increases sales volume per month by 10 percent Assuming that all other variables ... blur-text-image