Unit 5 Accounting Principles
The following sales figures are for the months of November 2023 to June 2024. The figures from January 2024 onward are estimated:
| $ | |
| Actual sales: | |
| November 2023 | 24000 |
| December 2023 | 36000 |
| Forecast sales: | |
| January 2024 | 42000 |
| February 2024 | 54000 |
| March 2024 | 60000 |
| April 2024 | 60000 |
| May 2024 | 57600 |
| June 2024 | 57600 |
50% of the sales are normally paid for in the month in which they occur and the customers are rewarded with a 10% cash discount. The remaining sales are paid for net in the month following the sale.
Goods are sold at a mark-up of 20% on the goods purchased one month before sale. Half of the purchases are paid for in the month of purchase and a 5% prompt settlement discount is received. The remainder is paid in full in the following month.
Unit 5 Accounting Principles
Rent of $8,000 per month are paid in the month in which they are earned. It is expected that the rent will be increased by 10% from 1 April 2024.
- The company has to repay a bank loan of $10,000 in March
- The half-yearly interest on $200000, 10% debentures of $1 each is due to be paid on 5 February
- The ordinary dividend of $25,000 for the year 2023 will be paid in March
- The bank balance at 31 December 2023 is $52,000.
Prepare a cash budget for the four months ending 30 April 2024. Give your answers to the nearest dollar ($).
Discuss the benefits and limitations of budgets and budgetary planning, and control for Topgun Co. Ltd. Evaluate the extent to which using budgets can help to identify problems and corrective actions.
Justify budgetary control solutions and their impact on organisational decision making to ensure efficient and effective deployment of resources.
Unit 5 Accounting Principles
Rent of $8,000 per month are paid in the month in which they are earned. It is expected that the rent will be increased by 10% from 1 April 2024.
- The company has to repay a bank loan of $10,000 in March
- The half-yearly interest on $200000, 10% debentures of $1 each is due to be paid on 5 February
- The ordinary dividend of $25,000 for the year 2023 will be paid in March
- The bank balance at 31 December 2023 is $52,000.
Prepare a cash budget for the four months ending 30 April 2024. Give your answers to the nearest dollar ($).
Discuss the benefits and limitations of budgets and budgetary planning, and control for Topgun Co. Ltd. Evaluate the extent to which using budgets can help to identify problems and corrective actions.
Justify budgetary control solutions and their impact on organisational decision making to ensure efficient and effective deployment of resources. APA.