Cash Budgets
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Q1. Fixed Overheads (including Depreciation) are €2,400 per month. We own one machine that cost €4,800 and has a useful life of 4 years. What will the monthly Fixed Overheads figure be in our Cash Budget? *
10 points
Q2. We borrowed €25,000 on January 31st (at 6% annual interest). One fifth of the money borrowed (together with the interest on the repaid amount) is being paid on June 30th. How much will we be paying? *
10 points
Q3. Sales in July are €400,000. 25% of Sales are for cash (and a 5% cash discount is allowed). The remainder is received the month after the sale. What figure will appear for Sales in August in our Cash Budget? *
10 points
Q4. Sales in January are €22,000 and the expected selling price is €11 per unit. Variable Overheads are €3 per unit. What figure will appear for Variable Overheads in our Cash Budget? *
10 points
Q5. Sales in September are €36,000. Gross Profit as a percentage of Sales is 20%. What's the Purchases figure for September? *
10 points
Q6. A computer was purchased on April 1st for €1,800 and will depreciate by 12.5% per annum. What figure will appear for Depreciation in the Profit and Loss Account on June 30th? *
10 points
Q7. Rates Prepaid for 2 months on January 1st were €400. On March 1st we paid six months Rates of €720.  What figure will appear for Rates in the Profit and Loss Account on June 30th? *
10 points
Q8. We want to keep a cash balance of at least €1,000 at the end of each month (and we will borrow in multiples of €1,000 if there is a shortfall). At the end of May, we have a Closing Cash of minus €3,250. How much will we therefore be borrowing? *
10 points
Q9. The Discount Received figure in the Profit & Loss Account is... *
10 points
Q10. Which of the following appears in the Cash Budget but not in the Profit & Loss Account? *
10 points
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