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Business
Accounting
Financial Data for Beachside Plumbing 2011     April May June Opening Balance 14 500 24 255 22 000         Sales 22 000 18 000 12 000 Interest 550 700 540 Debtors receipts 10 300 8 230 8 350 Total Cash Revenue 32 850 26930 20 890         Salaries 21 300 X 29 325 Expenses 850 235 3 200 Creditors paid 900 2 700 1 500 Other expenses 45 450 860 Total Cash Expenditures 23 095 29 185 34 885         Closing Balance 24 255 22 000 8 005   a)  Identify this financial document. b)  Calculate the figure for the May salaries. c)  Outline the importance of effective cash flow management for this business.

Financial Data for Beachside Plumbing 2011     April May June Opening Balance 14 500 24 255 22 000         Sales 22 000 18 000 12 000 Interest 550 700 540 Debtors receipts 10 300 8 230 8 350 Total Cash Revenue 32 850 26930 20 890         Salaries 21 300 X 29 325 Expenses 850 235 3 200 Creditors paid 900 2 700 1 500 Other expenses 45 450 860 Total Cash Expenditures 23 095 29 185 34 885         Closing Balance 24 255 22 000 8 005   a)  Identify this financial document. b)  Calculate the figure for the May salaries. c)  Outline the importance of effective cash flow management for this business.

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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Financial Data for Beachside Plumbing 2011

 

 

April

May

June

Opening Balance

14 500

24 255

22 000

 

 

 

 

Sales

22 000

18 000

12 000

Interest

550

700

540

Debtors receipts

10 300

8 230

8 350

Total Cash Revenue

32 850

26930

20 890

 

 

 

 

Salaries

21 300

X

29 325

Expenses

850

235

3 200

Creditors paid

900

2 700

1 500

Other expenses

45

450

860

Total Cash Expenditures

23 095

29 185

34 885

 

 

 

 

Closing Balance

24 255

22 000

8 005

 

a)  Identify this financial document.

b)  Calculate the figure for the May salaries.

c)  Outline the importance of effective cash flow management for this business.

d)   Propose and justify TWO strategies that could be used to improve the cash flow management of Beachside Plumbing.

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