Nuria owns The Academies Travel Agency, in George Street Sydney and is thinking of buying new...

 

 

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Nuria owns The Academies Travel Agency, in George Street Sydney and is thinking of buying new office furniture in three months' time (December, 20XX) you have been quoted a total cost of $65,000. The old furniture will be sold at that time for $3,000. Assume an opening bank balance of $50,000 at the beginning of October. Other details include: 1. lain estimates $70,000 sales for each month. Half these sales are received in cash and half are received in the next month as they are credit sales. October's credit sales from September, amount to $35,000. 2. Purchases amount to 25% of sales (excluding old furniture) and are paid for in cash. 3. Labour costs are $22,000 each month. 4. Superannuation ($3,000), rent (3,000), energy bills ($2,000), wastage ($2,500) are all paid monthly. 5. Courier costs to Embassies and customer Documentation amount to $1,000 per month. 6. Rates are paid once in October of $8,000. Requirements: a. Prepare a cash budget for each month for The Academies Travel Agency, with the view to advising Nuria whether she is in a position to pay $85,000 cash for the furniture at the end of the third month (December). Include also an accurate heading for this cash budget. b. Suppose your balance at end was negative, what (new approaches) actions to rectify the problem would you consider? Who would you consult and inform in relation to resource decisions? The Academies Travel Agency Cash budget for the three months ending 31/12/XX Cash receipts Cash sales Debtors Old Furniture Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Wastage Couriers Rates New Furniture Total cash payments Surplus/ Deficit Cash balance at start Cash balance at end October November December Quarter Recalculate The Academies Travel Agency's cash budget for the same period if: 1. sales still averaged $70.000 per month. 2 3. 23456 with sales averaging 90% cash and 10%, debtors for September were $6,000 purchases averaging 30% of sales bank balance to start was $4,000 all else remains the same. is there a problem with resource decisions? The Academies Travel Agency Cash budget for the three months ending 31/12/XX Cash receipts Cash sales Debtors Old Furniture Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Wastage Couriers Rates New Furniture Total cash payments Surplus/Deficit Cash balance at start Cash balance at end October November December Quarter Nuria owns The Academies Travel Agency, in George Street Sydney and is thinking of buying new office furniture in three months' time (December, 20XX) you have been quoted a total cost of $65,000. The old furniture will be sold at that time for $3,000. Assume an opening bank balance of $50,000 at the beginning of October. Other details include: 1. lain estimates $70,000 sales for each month. Half these sales are received in cash and half are received in the next month as they are credit sales. October's credit sales from September, amount to $35,000. 2. Purchases amount to 25% of sales (excluding old furniture) and are paid for in cash. 3. Labour costs are $22,000 each month. 4. Superannuation ($3,000), rent (3,000), energy bills ($2,000), wastage ($2,500) are all paid monthly. 5. Courier costs to Embassies and customer Documentation amount to $1,000 per month. 6. Rates are paid once in October of $8,000. Requirements: a. Prepare a cash budget for each month for The Academies Travel Agency, with the view to advising Nuria whether she is in a position to pay $85,000 cash for the furniture at the end of the third month (December). Include also an accurate heading for this cash budget. b. Suppose your balance at end was negative, what (new approaches) actions to rectify the problem would you consider? Who would you consult and inform in relation to resource decisions? The Academies Travel Agency Cash budget for the three months ending 31/12/XX Cash receipts Cash sales Debtors Old Furniture Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Wastage Couriers Rates New Furniture Total cash payments Surplus/ Deficit Cash balance at start Cash balance at end October November December Quarter Recalculate The Academies Travel Agency's cash budget for the same period if: 1. sales still averaged $70.000 per month. 2 3. 23456 with sales averaging 90% cash and 10%, debtors for September were $6,000 purchases averaging 30% of sales bank balance to start was $4,000 all else remains the same. is there a problem with resource decisions? The Academies Travel Agency Cash budget for the three months ending 31/12/XX Cash receipts Cash sales Debtors Old Furniture Total cash receipts Cash payments Purchases Labour cost Superannuation Rent Energy bills Wastage Couriers Rates New Furniture Total cash payments Surplus/Deficit Cash balance at start Cash balance at end October November December Quarter