How do you answer this question? Roxy the candle maker Roxy makes and sells scented candles in her shop and on-line. She also caters for functions such as parties, weddings etc. The candles cost $5 to make, and sell for $12. Roxy buys in the raw materials the month before she sells the candles. She pays a deposit of 20% when she orders and the rest the following month At the start of the year she owed $1,000 to supplier for the previous month Her customers pay 75% in the month of purchase and 25% the following month She pays rent of $1,000 on the shop in cash during the month before it is due She pays cash wages of $500 a month during the month Her other running costs are $900 a month, but this includes $200 for depreciation of the candle making machine In month 4 in the forthcoming year she intends to invest $5,000 on a new machine At the start of the year she has a Bank balance of $3,500 and is owed $600 from sales from the previous year, all of which will be collected in month 1 1. Calculate her cash flow for the first 6 months of the year, and advise her Her predicted sales are as follows Jan Feb Mar April May June July 300 350 350 450 500 550 600
How do you answer this question? Roxy the candle maker Roxy makes and sells scented candles in her shop and on-line. She also caters for functions such as parties, weddings etc. The candles cost $5 to make, and sell for $12. Roxy buys in the raw materials the month before she sells the candles. She pays a deposit of 20% when she orders and the rest the following month At the start of the year she owed $1,000 to supplier for the previous month Her customers pay 75% in the month of purchase and 25% the following month She pays rent of $1,000 on the shop in cash during the month before it is due She pays cash wages of $500 a month during the month Her other running costs are $900 a month, but this includes $200 for depreciation of the candle making machine In month 4 in the forthcoming year she intends to invest $5,000 on a new machine At the start of the year she has a Bank balance of $3,500 and is owed $600 from sales from the previous year, all of which will be collected in month 1 1. Calculate her cash flow for the first 6 months of the year, and advise her Her predicted sales are as follows Jan Feb Mar April May June July 300 350 350 450 500 550 600
Chapter6: Business Expenses
Section: Chapter Questions
Problem 27P
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How do you answer this question?
Roxy the candle maker | |||||||
Roxy makes and sells scented candles in her shop and on-line. She also caters for functions such as parties, weddings etc. | |||||||
The candles cost $5 to make, and sell for $12. | |||||||
Roxy buys in the raw materials the month before she sells the candles. She pays a deposit of 20% when she orders and the rest the following month | |||||||
At the start of the year she owed $1,000 to supplier for the previous month | |||||||
Her customers pay 75% in the month of purchase and 25% the following month | |||||||
She pays rent of $1,000 on the shop in cash during the month before it is due | |||||||
She pays cash wages of $500 a month during the month | |||||||
Her other running costs are $900 a month, but this includes $200 for |
|||||||
In month 4 in the forthcoming year she intends to invest $5,000 on a new machine | |||||||
At the start of the year she has a Bank balance of $3,500 and is owed $600 from sales from the previous year, all of which will be collected in month 1 | |||||||
1. Calculate her |
|||||||
Her predicted sales are as follows | Jan | Feb | Mar | April | May | June | July |
300 | 350 | 350 | 450 | 500 | 550 | 600 |
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