Thorne Estates Limited advertises and sells residential property on behalf of its customers. The company has been in business for only a short time and is preparing a cash budget for the first four months of 2021. Expected sales of residential properties are as follows: 2020 Dec - 10 Units sold 2021 Jan - 10 Units sold 2021 Feb - 15 Units sold 2021 March - 25 Units sold 2021 Apr - 30 Units sold The average price of each property is £180,000 and Thorne Estates charges a fee of 3% of the value of each property sold. Thorne Estates receives a 1% in the month of sale and the remaining 2% in the month after sale. The company has nine employees who are paid on a monthly basis. The average salary per employee is £35,000 per year. If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of £140 for each additional property sold. Variable expenses are incurred at the rate of 0.5% of the value of each property sold and these expenses are paid in the month of sale. Fixed overheads of £4,300 per month are paid in the month in which they arise. Thorne Estates pays interest every three months on a loan of £200,000 at a rate of 6% per year. The last Interest payment in each year is paid in December. Rent of £42,000 will fall due at the end of May. An outstanding tax liability of £95,800 is due to be paid in April. In the same month, Thorne Estates intends to dispose of surplus vehicles, with a net book value of £15,000 for £20,000. The cash balance at the start of January 2021 is expected to be a deficit of £40,000. Question : 1 - Could you please help me and prepare a monthly cash budget for the FOUR months from 1st Jan to 30 April 2021 filling the atached excel ( its the templates i needs to use it for my homework )
Thorne Estates Limited advertises and sells residential property on behalf of its customers. The company has been in business for only a short time and is preparing a
2020 Dec - 10 Units sold
2021 Jan - 10 Units sold
2021 Feb - 15 Units sold
2021 March - 25 Units sold
2021 Apr - 30 Units sold
The average price of each property is £180,000 and Thorne Estates charges a fee of 3% of the value of each property sold. Thorne Estates receives a 1% in the month of sale and the remaining 2% in the month after sale.
The company has nine employees who are paid on a monthly basis. The average salary per employee is £35,000 per year.
If more than 20 properties are sold in a given month, each employee is paid in that month a bonus of £140 for each additional property sold.
Variable expenses are incurred at the rate of 0.5% of the value of each property sold and these expenses are paid in the month of sale. Fixed
Thorne Estates pays interest every three months on a loan of £200,000 at a rate of 6% per year. The last Interest payment in each year is paid in December.
Rent of £42,000 will fall due at the end of May.
An outstanding tax liability of £95,800 is due to be paid in April. In the same month, Thorne Estates intends to dispose of surplus vehicles, with a net book value of £15,000 for £20,000.
The cash balance at the start of January 2021 is expected to be a deficit of £40,000.
Question :
1 - Could you please help me and prepare a monthly cash budget for the FOUR months from 1st Jan to 30 April 2021 filling the atached excel ( its the templates i needs to use it for my homework )
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