Managing Finance and Accounts

Post Graduate Diploma in Management studies

2003-2004 Year 2

Managing Finance and Accounting

Tutor: Ian Andrews

Module Title: Managing Finance and Accounting

Student:

Date: June 2004

CONTENTS

1 Cash Budget for July - October

2 Forecast Productions for three-month period

2.1 Actual Production for three-month period

2.2 Potential reasons for variation

2.3 Recommendations

1 Prepare a cash budget for the four months July - Oct

Task 2

JULY AUGUST SEPTEMBER OCTOBER

Ј Ј Ј Ј

RECIEPTS

Capital Introduced 300,000

Debtors 285,000 440,700 567,870 583,110

Total Receipts for the month 585,000 440,700 567,870 583,110

PAYMENTS

LabourWages paid end of each month Ј10 per unit) 95,000 93,000 99,000 100,000

Stock/materials 57,465 164,715 176,370 189,925

Creditors syndicate lenders loan 60,000 60,000 60,000

Overheads 47,500 46,500 49,500 50,000

Depreciation Ј5 per unit 47,500 46,500 49,500 50,000

Administration 28,500 27,900 29,700 30,000

Marketing 19,000 18,600 19,800 20,000

Capital Expenditure 50,000

Total Payments for the month 294,965 457,215 483,870 549,925

Net Cash Flow (receipts less payments)

Bank Balance close of previous month 50,000 340,035 323,520 407,520

Bank Balance 340,035 323,520 407,520 440,705

2 Forecast Production for three-month Period

Task 3

Activity level (units)

4000 5000 6000 7000 8000

Direct Materials 80,000 100,00 120,000 140,000 160.000

Direct Labour 50,000 62,500 75,000 87,500 100,000

Power 18,000 18,000 18,000 21,000 24,000

Repairs 20,000 22,500 25,000 27,500 30,000

Supervision 20,000 24,000 28,000 32,000 36,000

Rent and rates 9,000 9,000 9,000 9,000 9,000

Insurance 15,000 17,500 20,000 22,500 25,000