Ireland Cash Budget (HELP!)

Joined
Dec 13, 2020
Messages
1
Reaction score
0
Country
Ireland
Hi guys I have to prepare a cash budget for a college assignment. Generally I am usually quite good at accounting and understand the concept of cash budgeting but my lecturer did not go into a lot of detail and has left the majority of the class in the dark. I will some details of the assignment below. If anyone can give us a hand it would be greatly appreciated.

Sales Information:
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.

Production Information:
(e) The production cost of the company’s 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) The company is expected to be €24,000 overdrawn in the bank on 1st 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.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Cash journal entries 2
USA How do I show proof of income if I paid in cash? 1
Confusion about cash flows 3
UK Cash Budget 4
South Africa CAsh BUdget Assistance 1
Cash budget enquiry 3
Pre-Opening Budget v Cashflow model 0
UK Asking about cash budget 0

Members online

No members online now.

Forum statistics

Threads
11,742
Messages
27,787
Members
21,737
Latest member
DevinCiz

Latest Threads

Top