Sunshine Ltd sells beach buckets and spades. The forecast information for the six months ending 31 October 2002 is: May June July August September October £000 £000 £000 £000 £000 £000 Sales (Revenue) 16 20 26 28 24 20 Purchases 12 16 18 14 12 10 Overheads 4 8 8 4 Additional information 1. On average 20% of each month's sales is expected to be for cash. A further 60% will be given one month's credit. The rest will be given two months' credit. All monies should be received when due. The increase in overheads arises from the employment of casual staff. The overheads are paid in the month in which they occur. 2. 3. Suppliers are expected to allow one month's credit. 4. The cash at bank balance as at 1 July 2002 is £7,200 overdrawn. REQUIRED (a) Prepare a detailed forecast month by month cash budget for the four months ending 31 October 2002.

Sunshine Ltd sells beach buckets and spades. The forecast information for the six months ending 31 October 2002 is: May June July August September October £000 £000 £000 £000 £000 £000 Sales (Revenue) 16 20 26 28 24 20 Purchases 12 16 18 14 12 10 Overheads 4 8 8 4 Additional information 1. On average 20% of each month's sales is expected to be for cash. A further 60% will be given one month's credit. The rest will be given two months' credit. All monies should be received when due. The increase in overheads arises from the employment of casual staff. The overheads are paid in the month in which they occur. 2. 3. Suppliers are expected to allow one month's credit. 4. The cash at bank balance as at 1 July 2002 is £7,200 overdrawn. REQUIRED (a) Prepare a detailed forecast month by month cash budget for the four months ending 31 October 2002.

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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