fittings worth £100,000 and furniture etc valued at £4 which she will deposit into a business bank account in ank to get a loan.
fittings worth £100,000 and furniture etc valued at £4 which she will deposit into a business bank account in ank to get a loan.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare a cash budget for Carla for the six months to 30th June
![m)
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Carla has inherited a small café in the centre of town, worth £250,000 and plans to run it
selling lunches and snacks.
It has kitchen fixtures and fittings worth £100,000 and furniture etc valued at £4,000.
She has savings of £5,000 which she will deposit into a business bank account in January and
is in discussion with her bank to get a loan.
They have asked her to prepare a business plan, including a cash budget for the coming six
months.
Carla expects the café to draw customers straight away. Most customers will pay cash
immediately, but Carla intends to offer to sell on credit terms to local professional offices
(accountants, solicitors etc) for staff lunches, meetings etc
I
She reckons that her sales for the coming six months will be:
+
January
February
March
April
May
June
£
6,000
6,500
7,000
7,500
7,500
8,000
The credit sales will be paid up in the month following sale.
Carla will buy ingredients immediately before using them and the cost will be 50% of monthly
sales. There will be negligible inventory on hand. (For example, in January, ingredients costs
will be 6,000 50% = £3,000)
Required:
% credit sales
0%
5%
5%
10%
10%
10%
Carla will employ a part-time assistant for the busiest times of the day and on Saturdays and
he will be paid £750 per month.
She will need to buy a small delivery vehicle and has seen one advertised for £4,900. She will
buy it in February.
Some of the furniture needs replacement and she thinks she will budget £800 for that in
January.
Repairs, redecorating will be undertaken in January and February and be paid for in March.
This will cost £2,000.
Utility costs, including electricity, other utility bills etc are budgeted to be £1,800 a month.
Business rates are £2,000 for the six months from April and are payable in April.
Dronare a cash budget for Carla for the six months to 30th luna
Focus](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedc4c869-2bbd-40c4-b1bf-56ef0fecd4bb%2F3b7b9244-0ed2-45db-924a-77d31f63f7a1%2Fplkyvif_processed.jpeg&w=3840&q=75)
Transcribed Image Text:m)
●
●
●
●
●
●
●
●
●
●
●
Carla has inherited a small café in the centre of town, worth £250,000 and plans to run it
selling lunches and snacks.
It has kitchen fixtures and fittings worth £100,000 and furniture etc valued at £4,000.
She has savings of £5,000 which she will deposit into a business bank account in January and
is in discussion with her bank to get a loan.
They have asked her to prepare a business plan, including a cash budget for the coming six
months.
Carla expects the café to draw customers straight away. Most customers will pay cash
immediately, but Carla intends to offer to sell on credit terms to local professional offices
(accountants, solicitors etc) for staff lunches, meetings etc
I
She reckons that her sales for the coming six months will be:
+
January
February
March
April
May
June
£
6,000
6,500
7,000
7,500
7,500
8,000
The credit sales will be paid up in the month following sale.
Carla will buy ingredients immediately before using them and the cost will be 50% of monthly
sales. There will be negligible inventory on hand. (For example, in January, ingredients costs
will be 6,000 50% = £3,000)
Required:
% credit sales
0%
5%
5%
10%
10%
10%
Carla will employ a part-time assistant for the busiest times of the day and on Saturdays and
he will be paid £750 per month.
She will need to buy a small delivery vehicle and has seen one advertised for £4,900. She will
buy it in February.
Some of the furniture needs replacement and she thinks she will budget £800 for that in
January.
Repairs, redecorating will be undertaken in January and February and be paid for in March.
This will cost £2,000.
Utility costs, including electricity, other utility bills etc are budgeted to be £1,800 a month.
Business rates are £2,000 for the six months from April and are payable in April.
Dronare a cash budget for Carla for the six months to 30th luna
Focus
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