You are required to prepare the cash budget for the two months of January and February 2021. The following is the projected information: January 2021 February 2021 Cash sales R280,336 R305,132 Receivables collection R69,602 R70,277 Cash purchases R34,997 R36,515 Rent payment R7,545 R7,545 The bank balance on 1 January 2021 is expected to be R201,806 favourable. A fixed deposit for R113,959 is expected to mature on 25 January 2021. Equipment to the value of R142,119 is to be purchased on credit in January 2021 and will be paid in full on 28 February 2021. The expected closing bank balance on 31 January 2021 will be R ________
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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You are required to prepare the The following is the projected information:
The bank balance on 1 January 2021 is expected to be R201,806 favourable. A fixed deposit for R113,959 is expected to mature on 25 January 2021. Equipment to the value of R142,119 is to be purchased on credit in January 2021 and will be paid in full on 28 February 2021. The expected closing bank balance on 31 January 2021 will be R _________ . |
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