5 Which expense does not appear in the cash budget? Choose one answer. a. Supplies. b. Depreciation c. Rent d. Wages e. Maintenance

6 CompuData owns a chain of five shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of May 2014 it had an overdraft of $100,000. In view of this, CompuDatas managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information:

	June $000s	July $000s	August $000s	September $000s	October $000s	November $000s
Cash sales (cash collections)	250	200	250	350	200	80
Cash purchases	180	160	130	40	50	60
Wages and salaries	40	40	50	40	40	45
Rent			80
Rates						60
Other expenses	25	25	25	25	25	25
Refurbishing shops				80
Total cash disbursements	245	225	285	185	115	190

Choose one answer. a. $25,000. b. $(20,000) c. $(100,000) d. $(25,000). e. $(120,000).

7 A budget is best defined as: Choose one answer. a. A forecast for a future period of time. b. A financial plan for a future period of time. c. A non-financial plan for a future period of time. d. A prediciton of a present value of the future cash flows. e. A prediction for a future period.