TASK 1.1 Kashi is preparing the cash budget for the first 3 months of her business's trading. Business is called Kashi textiles and Kashi will be investing £25,000 of her personal savings to get it started. Rest of the information is as follows: In January 2022, Kashi will purchase a computer and a printer for use in the business for £1,980, payable upfront. а. b. Kashi expects to sell the following textiles: January £4,500 to Moon Traders February £6,890 to Hans Traders March £5,670 to Down Town shops. С. Kashi expects to make the following purchases of textiles over the next three months: £3,280 for Moon Traders supplies £5,120 for Hans Traders supplies £4,100 for Down Town shops' supplies January February March d. All sales will be made for cash. Purchases: 10% payment in the same month, 50% payment next month and remaining payment in 2 months' time. е. f. Kashi will need to hire a printing machine to print her logos and the hiring charges will be £250 per month, payable in the same month. Hiring will be made in January and will be needed for all the subsequent trading months. g. Kashi has agreed to pay £250 per month to an accountant for his advice and preparation of accounts. h. Other expenses have been estimated as follows: £100 on delivery costs per month, payable at the end of each month. £425 on telephone costs per quarter, payable at the end of the quarter. £250 on other expenses, such as electricity and insurance, payable at the end of each month. i. Kashi will be withdrawing £700 per month to cover her personal expenses. Prepare the cash budget for Kashi textiles for first 3 months' of trading from January to March, 2022.Show your workings separately.
TASK 1.1 Kashi is preparing the cash budget for the first 3 months of her business's trading. Business is called Kashi textiles and Kashi will be investing £25,000 of her personal savings to get it started. Rest of the information is as follows: In January 2022, Kashi will purchase a computer and a printer for use in the business for £1,980, payable upfront. а. b. Kashi expects to sell the following textiles: January £4,500 to Moon Traders February £6,890 to Hans Traders March £5,670 to Down Town shops. С. Kashi expects to make the following purchases of textiles over the next three months: £3,280 for Moon Traders supplies £5,120 for Hans Traders supplies £4,100 for Down Town shops' supplies January February March d. All sales will be made for cash. Purchases: 10% payment in the same month, 50% payment next month and remaining payment in 2 months' time. е. f. Kashi will need to hire a printing machine to print her logos and the hiring charges will be £250 per month, payable in the same month. Hiring will be made in January and will be needed for all the subsequent trading months. g. Kashi has agreed to pay £250 per month to an accountant for his advice and preparation of accounts. h. Other expenses have been estimated as follows: £100 on delivery costs per month, payable at the end of each month. £425 on telephone costs per quarter, payable at the end of the quarter. £250 on other expenses, such as electricity and insurance, payable at the end of each month. i. Kashi will be withdrawing £700 per month to cover her personal expenses. Prepare the cash budget for Kashi textiles for first 3 months' of trading from January to March, 2022.Show your workings separately.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:TASK 1.1
Kashi is preparing the cash budget for the first 3 months of her business's trading. Business is called
Kashi textiles and Kashi will be investing £25,000 of her personal savings to get it started. Rest of the
information is as follows:
In January 2022, Kashi will purchase a computer and a printer for use in the business for £1,980,
а.
payable upfront.
b. Kashi expects to sell the following textiles:
January
£4,500 to Moon Traders
February
£6,890 to Hans Traders
March
£5,670 to Down Town shops.
С.
Kashi expects to make the following purchases of textiles over the next three months:
January
£3,280 for Moon Traders supplies
February
£5,120 for Hans Traders supplies
March
£4,100 for Down Town shops' supplies
d. All sales will be made for cash.
е.
Purchases: 10% payment in the same month, 50% payment next month and remaining payment
in 2 months' time.
f.
Kashi will need to hire a printing machine to print her logos and the hiring charges will be £250
per month, payable in the same month. Hiring will be made in January and will be needed for all
the subsequent trading months.
g.
Kashi has agreed to pay £250 per month to an accountant for his advice and preparation of
accounts.
h. Other expenses have been estimated as follows:
£100 on delivery costs per month, payable at the end of each month.
£425 on telephone costs per quarter, payable at the end of the quarter.
£250 on other expenses, such as electricity and insurance, payable at the end of each month.
i.
Kashi will be withdrawing £700 per month to cover her personal expenses.
Prepare the cash budget for Kashi textiles for first 3 months' of trading from January to March,
2022.Show your workings separately.
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