Project #70225 - Cash Flow budget

kDescription -You are tasked with preparing a Cash Flow Budget and research into their importance in a business environment.


Part A Report- prepared IN Excel Spreadsheet(s) format-(preferably) in Times Roman, 12 point. You must present your report in hard copy, -there are no word count restrictions

You must also print out a hard copy of the formulae template.


Part B Report (length no more than 1,200 words).Your report should be word-processed (preferably) in Times Roman, 12 point. You must present your report in hard copy.


Learning Outcomes Assessed

      Learning Outcomes 1,3,4,5.

-       Understand the roles of financial and management accounting within organisations of  different capital structures, identifying the principle users and uses of financial information.

-       Understand the Income Statement and Balance Sheet of the various capital structures within the Hospitality Industry.

-       Describe the purpose and process of budgeting and budgetary control and prepare a set of budgeted accounts.

-       use IT spreadsheets to calculate and present accounting data.

Assessment Criteria/Marking Scheme

     Your ability to construct a Cash Flow Budget in a spreadsheet format (40%).

     Calculation and setting up of Formulae in producing the final results (5%).

     Explanations, discussions and presentation of your findings (40%).

     Presentation, including the correct use of grammar, spelling and referencing (15%).


Mantex Restaurants Limited: - Ted Raker is the founder member and has a 100% holding in the Issued Share Capital. The Company had been experiencing liquidity problems, and recently (November 2014) took out a loan with its bank of £100,000. The company has no overdraft facility with its bankers.


Mantex Ltd, have given you the following budget, for the first two quarters of the year to June 2015.



                                           January    February   March       April      May          June

                                                 £           £                £              £              £               £

Departmental Sales             340,000   350,000   340.000   350,000    360,000     350,000


Goods Purchased                 160,000   180,000  210,000   200,000    160,000     180,000

Departmental Wages             50,000     60,000    64,000     64,000      68,000       68,000

Departmental Overheads       60,000     65,000    65,000     70,000      75,000      75,000



They have asked you to produce a company Cash Flow Budget for the second quarter of the year 2015, based on the budget above and the following information.


·       The Company has a cash balance of £65,000 on 1st April, with no overdraft facility in place.


·       The department is due for a Tax Rebate of £45,200 in May.


·       Suppliers are paid on 2 months credit.


·       New equipment costing £250,000 will be received in April - 50% will be paid the following month and 25% paid on each of the following two months.


·       The department will receive a grant of £33,000 from the government towards its purchase of new equipment – payable in three equal instalments from May to July.


·       There is a delay in payment of Departmental Wages averaging a quarter of a month- all months consist of four weeks.


·       Departmental Overheads are paid on 1 month’s credit. They include £5,000 per month provision for depreciation.


·       Sales Commissions of 2.5 % are paid in the month following the Sales.


·       The bank loan repayment (including interest) is £4,000 per month.


·       A final dividend of £50,000 will be paid in May.



Continued on next page

Departmental Sales:-


·       60% of the sales are Cash Sales with a 5% cash payment discount


·       25% of the sales are paid in the following month with no cash payment discount.


·       The remaining sales are paid  after two months, with no discount

Subject Business
Due By (Pacific Time) 05/07/2015 12:00 am
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