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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?
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?
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?
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?
Q5. Sales in September are €36,000. Gross Profit as a percentage of Sales is 20%. What's the Purchases figure for September?
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?
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?
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?
Q9. The Discount Received figure in the Profit & Loss Account is...
The total of all of the Sales discounts applied during the time period
The total of all of the Purchases discounts applied during the period
The total of all discounts (Sales + Purchases) applied during the period
Q10. Which of the following appears in the Cash Budget but not in the Profit & Loss Account?
Purchase of Fixed Assets
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