Cozzie Ltd (you can use the supplied excel spreadsheet on ELE for speed) Cozzie Ltd. manufactures...

 

Transcribed Image Text:

Cozzie Ltd (you can use the supplied excel spreadsheet on ELE for speed) Cozzie Ltd. manufactures and sells swimwear to retailers. The cash budget has been prepared for the period January 2021 - June 2021: Receipts Sales Interest received Total Receipts Payments Purchases Wages & Salaries Machinery Rent Taxation Other expenditure Transportation costs Final dividend payment Total Payments Overdraft interest Net cash inflow/outflow Opening cash balance Closing cash balance. May June January November 2020 December 2020 2021 2021 78,000 2,500 80,500 Februar y Additional information: 94,600 2,500 97,100 120,000 110,800 18,200 18,200 85,000 3,600 March 172,350 2,500 174,850 82,600 16,400 42,000 4,100 1,800 20,000 294,700 134,500 104,200 (716) (875) (214,200 ) 42,400 (171,800 (209,916 (140,140 Sales 78,000 94,600 246,000 235,000 April 3,600 3,200 3,100 4,800 2,300 2,100 3,500 210,000 198,000 2,500 2,500 200,500 212,500 74,800 66,200 16,400 16,400 103,100 (584) Budgeted monthly figures (from the Income Period May Purchases 130,000 120,000 58,200 62,400 3,200 2,200 (38,116) 69,775 96,816 124,319 141,700 (171,800 (209,916 (140,140 ) (43,324) 80,995 (43,324) 80,995 222,695 June 220,000 2,500 222,500 58,200 16,400 3,600 2,600 88,000 80,800 (181) All purchases are bought on credit, a 30 day settlement period has been negotiated with suppliers. All goods are sold on credit, a 60 day settlement period has been negotiated with customers. Cozzie Ltd (you can use the supplied excel spreadsheet on ELE for speed) Cozzie Ltd. manufactures and sells swimwear to retailers. The cash budget has been prepared for the period January 2021 - June 2021: Receipts Sales Interest received Total Receipts Payments Purchases Wages & Salaries Machinery Rent Taxation Other expenditure Transportation costs Final dividend payment Total Payments Overdraft interest Net cash inflow/outflow Opening cash balance Closing cash balance. May June January November 2020 December 2020 2021 2021 78,000 2,500 80,500 Februar y Additional information: 94,600 2,500 97,100 120,000 110,800 18,200 18,200 85,000 3,600 March 172,350 2,500 174,850 82,600 16,400 42,000 4,100 1,800 20,000 294,700 134,500 104,200 (716) (875) (214,200 ) 42,400 (171,800 (209,916 (140,140 Sales 78,000 94,600 246,000 235,000 April 3,600 3,200 3,100 4,800 2,300 2,100 3,500 210,000 198,000 2,500 2,500 200,500 212,500 74,800 66,200 16,400 16,400 103,100 (584) Budgeted monthly figures (from the Income Period May Purchases 130,000 120,000 58,200 62,400 3,200 2,200 (38,116) 69,775 96,816 124,319 141,700 (171,800 (209,916 (140,140 ) (43,324) 80,995 (43,324) 80,995 222,695 June 220,000 2,500 222,500 58,200 16,400 3,600 2,600 88,000 80,800 (181) All purchases are bought on credit, a 30 day settlement period has been negotiated with suppliers. All goods are sold on credit, a 60 day settlement period has been negotiated with customers.

Answer rating: 100% (QA)

A cash budget is a financial tool used by managers to determine the availability of cash and to plan for potential shortages or excesses It is prepare... View the full answer