Layout References Mailings Review View Help PROTECTED VIEW Be careful - files from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected View. Before attempting the quiz, complete this question: John's small restaurant Enable Editing Quiz 5: Question John started a small restaurant in the centre of town, worth 350,000 and plans to run it selling lunches and snacks. It has kitchen fixtures and fittings worth 150,000 and furniture etc valued at 8,000. She has savings of 10,000 which he will deposit into a business bank account in January and is in discussion with her bank to get a loan. They have asked him to prepare a business plan, including a cash budget for the coming six months. January February March April May June John expects the restaurant to draw customers straight away. Most customers will pay cash immediately, but John intends to offer to sell on credit terms to local professional offices (accountants, solicitors etc) for staff lunches, meetings etc He reckons that his sales for the coming six months will be: 12,000 13,000 14,000 15,000 15,000 16,000 % credit sales 0% 5% 5% 10% 10% 10% The credit sales will be paid up in the month following sale. John will buy ingredients immediately before using them and the cost will be 50% of monthly sales. There will be negligible inventory on hand. (For example, in January, ingredients costs will be 12,000*50% = 6,000) John will employ an assistant who will be paid 1,500 per month. He will need to buy a small delivery vehicle and has seen one advertised for 9,800. He will buy it in February. Some of the furniture needs replacement and he thinks he will budget 1,600 for that in January. Repairs, redecorating will be undertaken in January and February and be paid for in March. This will cost 4,000. Running costs, including electricity, other utility bills etc are budgeted to be 3,600 a month. Business rates are 4,000 for the six months from April and are payable in April. Required: Prepare a cash budget for John for the six months to 30th June. Comments Viewing DFOCUS - x Share X I 69%

buile 5: Question Before attempting the quir, complete this question: John's amall restaurant - John started a small restaurant in the centre of town, worth 8950,000 and plans to run it selling lunches and snacks. - It has kitchen fixtures and fittings worth 6950,000 and furniture etc valued at 58,000 . - She has savines of 410,000 which he will deposit into a business bank account in lanuary and is in discussion with her bank to get a laan. - They have asked him to prepare a business plan, induding a cash budset for the coming sk months. - John expects the restaurant to draw customers straldit awoy. Most austomers will py cash immediately, but John intends to offer to sell on aredit terms to local professlonal offices (accountants, soliditors etc) for staif lunches, meetings ete - He reckons that his sales for the coming slx months will be: - The credit sales will be paid up in the month following sale - John will buy ingedients immediately before using them and the cost will be 50 s of monthly sales. There will be nealleble inventory on hand. (For example, in lanuary, ingredients costs will be 12,0005086=26,000 ) - John will employ an assistant who will be pald 61,500 per month. - He will need to buy a small delivery vehicle and has seen one advertised for 09,200 . He will buy it in february. - Some of the fumiture needs replacement and he thinks he will budget fy,600 for that in Jantory. - Repalrs, redecorating will be undertaken in January and February and be pald for in March. This will cost 24,000 . - Running costs, induding electridty, other utility bills ete are budgeted to be 83,600 a month. - Business rates are e4,000 for the sk months from April and are payable in ApriL. Required: Prepare a cash budget for John for the sk months to 30 tune