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Cash Flow Budgeting Exercise Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Opening Balance 5,000 5.000 Income Product Sales Merchandising Government grant 285,000 6,000 50,000 Total 341,000 Expenditure Salaries Casual Wages Office & Admin Expenses Travel & transport Venue Hire 120,000 10,000 36,000 56,000 24,000 Total 246,000 Closing Balance 100,000

Cash Flow Budgeting Exercise Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Opening Balance 5,000 5.000 Income Product Sales Merchandising Government grant 285,000 6,000 50,000 Total 341,000 Expenditure Salaries Casual Wages Office & Admin Expenses Travel & transport Venue Hire 120,000 10,000 36,000 56,000 24,000 Total 246,000 Closing Balance 100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash Flow Budgeting Exercise May Aug Sep Oct Nov Dec Jan 5,000 5.000 Total Feb Mar Apr Jun Jul Opening Balance Income Product Sales Merchandising Government grant 285,000 6,000 50,000 Total 341,000 Expenditure Salaries Casual Wages Office & Admin 120,000 10,000 36,000 Expenses Travel & transport Venue Hire 56,000 24,000 Total 246.000 Closing Balance 100,000
Transcribed Image Text:Cash Flow Budgeting Exercise May Aug Sep Oct Nov Dec Jan 5,000 5.000 Total Feb Mar Apr Jun Jul Opening Balance Income Product Sales Merchandising Government grant 285,000 6,000 50,000 Total 341,000 Expenditure Salaries Casual Wages Office & Admin 120,000 10,000 36,000 Expenses Travel & transport Venue Hire 56,000 24,000 Total 246.000 Closing Balance 100,000
Student Exercise 2: Cash Flow Budget The purpose of this exercise is provide hands-on learning in how to create a Cash Flow Forecast that predicts the month-end bank balance for every month of the year. In this scenario, you are the manager in a pharmaceutical company ABC. You are required to complete a cash flow forecast using the template provided. Your cash flow forecast will predict the bank balance at the end of each month for every month of the year The information you have at your disposal to complete this task is as follows: 1. The pharmacy has on its books four (4) major marketing events to run which will take place in March, May, August, and October. 2. The total of $285,000 of product sales will be earned in the months that the events are held. The March event will ean $65,000, and the other events in May, August and October will earn $70,000, 85,000 and $65,000 respectively. 3. Expenditure on casual salaries, travel and transport, and venue hire will occur only in the months in which the four events take place. These expenditures will be the same for each event. 4. Salaries and Office and administration expenses will occur evenly every month 5. The company's opening bank balance on 1 January is $5,000 6. The company will receive a government grant of $50,000 in July 7. The company will make a small income from Merchandising during the months in which the four events are staged The event in March will eam $1,300 merchandising income, and the other events in May, August and October will eam $1,600, $1,800 and $1,300 respectively. You are provided with a template below to assist you to complete the exercise.
Transcribed Image Text:Student Exercise 2: Cash Flow Budget The purpose of this exercise is provide hands-on learning in how to create a Cash Flow Forecast that predicts the month-end bank balance for every month of the year. In this scenario, you are the manager in a pharmaceutical company ABC. You are required to complete a cash flow forecast using the template provided. Your cash flow forecast will predict the bank balance at the end of each month for every month of the year The information you have at your disposal to complete this task is as follows: 1. The pharmacy has on its books four (4) major marketing events to run which will take place in March, May, August, and October. 2. The total of $285,000 of product sales will be earned in the months that the events are held. The March event will ean $65,000, and the other events in May, August and October will earn $70,000, 85,000 and $65,000 respectively. 3. Expenditure on casual salaries, travel and transport, and venue hire will occur only in the months in which the four events take place. These expenditures will be the same for each event. 4. Salaries and Office and administration expenses will occur evenly every month 5. The company's opening bank balance on 1 January is $5,000 6. The company will receive a government grant of $50,000 in July 7. The company will make a small income from Merchandising during the months in which the four events are staged The event in March will eam $1,300 merchandising income, and the other events in May, August and October will eam $1,600, $1,800 and $1,300 respectively. You are provided with a template below to assist you to complete the exercise.
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