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The CEO of Barney the Dino Limited wishes to prepare a cash flow budget to estimate the company's cash surplus or deficit. Barmey's Statement of Financial position is as follows.

The CEO of Barney the Dino Limited wishes to prepare a cash flow budget to estimate the company's cash surplus or deficit. Barmey's Statement of Financial position is as follows.

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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uonsanb The CEO of Barney the Dino Limited wishes to prepare a cash flow budget to estimate the company's cash surplus or deficit. Barmey's Statement of Financial position is as follows. Statement of Financial Position of Acme Acres Ltd as at 31 January 20X7 E'000 E'000 Non-current assets at cost Premises Less: accumulated depreciation on Premises 1560 300 1260 Furniture 600 Less: accumulated depreciation on Furniture 150 450 1710 Current assets Cash Receivables 45 Closing Inventory Prepaid expenses 90 40 175 1885 TOTAL ASSETS Current liabilities: Payables Short term loan 50 45 Outstanding Expenses 60 100 Bank overdraft 255 Non-current liabilities Debentures 245 245 Equity Ordinary share capital 400 Share Premium 100 50 TOTAL EQUITY & UABILITIES 1885 Continued on next page Additional Notes The directors of the company have prepared the following estimates for the next 6 months: (a) Sales and purchases are expected to be as follows: Sales E'000 Purchases £'000 20 22 February 35 March 32 April 45 30 May 39 25 June 55 40 July 65 50
Transcribed Image Text:uonsanb The CEO of Barney the Dino Limited wishes to prepare a cash flow budget to estimate the company's cash surplus or deficit. Barmey's Statement of Financial position is as follows. Statement of Financial Position of Acme Acres Ltd as at 31 January 20X7 E'000 E'000 Non-current assets at cost Premises Less: accumulated depreciation on Premises 1560 300 1260 Furniture 600 Less: accumulated depreciation on Furniture 150 450 1710 Current assets Cash Receivables 45 Closing Inventory Prepaid expenses 90 40 175 1885 TOTAL ASSETS Current liabilities: Payables Short term loan 50 45 Outstanding Expenses 60 100 Bank overdraft 255 Non-current liabilities Debentures 245 245 Equity Ordinary share capital 400 Share Premium 100 50 TOTAL EQUITY & UABILITIES 1885 Continued on next page Additional Notes The directors of the company have prepared the following estimates for the next 6 months: (a) Sales and purchases are expected to be as follows: Sales E'000 Purchases £'000 20 22 February 35 March 32 April 45 30 May 39 25 June 55 40 July 65 50
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