Complete a financial plan for the canteen at the Military Academy for the 3 and the...
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Complete a financial plan for the canteen at the Military Academy for the 3" and the 4 month of 2024. The sales policy of the canteen is 40% cash, and credit is extended for 30 days. The canteen purchases inventory 1 month in advance to the value of 85% of expected sales. They have to pay suppliers 80% in cash and the remainder within 1 month of receiving purchases. Month 4 6 Sales R160 000 R120 000 R80 000 R140 000 R270 000 R116 000 There are no outstanding loans at the start of the third month. The beginning cash balance in the third month is R16 000 and the minimum cash balance is R15 000. Financial shortages can be financed at 5% per month and loans should be paid back as soon as funds are available. Financial Plan for 2024 Sales Cash sales Debtors Cash receipts Cash Purchases Creditors Cash disbursements Net Cash Flow Beginning Balance New St Borrowing Interest on loan Payment on loan End Cash Balance Min Balance Cum Surplus/Deficit Beginning St borrowing Change in St borrowing End St borrowing Month1 Month2 Month 3 Month4 Month5 Month 6 160 000 120 000 80 000 140 000 270 000 116 000 64 000 96000 16.000 -15000-15000 Complete a financial plan for the canteen at the Military Academy for the 3" and the 4 month of 2024. The sales policy of the canteen is 40% cash, and credit is extended for 30 days. The canteen purchases inventory 1 month in advance to the value of 85% of expected sales. They have to pay suppliers 80% in cash and the remainder within 1 month of receiving purchases. Month 4 6 Sales R160 000 R120 000 R80 000 R140 000 R270 000 R116 000 There are no outstanding loans at the start of the third month. The beginning cash balance in the third month is R16 000 and the minimum cash balance is R15 000. Financial shortages can be financed at 5% per month and loans should be paid back as soon as funds are available. Financial Plan for 2024 Sales Cash sales Debtors Cash receipts Cash Purchases Creditors Cash disbursements Net Cash Flow Beginning Balance New St Borrowing Interest on loan Payment on loan End Cash Balance Min Balance Cum Surplus/Deficit Beginning St borrowing Change in St borrowing End St borrowing Month1 Month2 Month 3 Month4 Month5 Month 6 160 000 120 000 80 000 140 000 270 000 116 000 64 000 96000 16.000 -15000-15000
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SOLUTION To complete the financial plan for the canteen at the Military Academy for the 3rd and 4th month of 2024 we need to calculate the cash receip... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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