•   Required:
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• Prepare a forecasted cash budget for January to March 2022.
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• .• An evaluation of Voguie’s performance or position during the same period
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• .• A detailed Literature Review of the tools you have used such as capital investment techniques, breakeven analysis and budgets and their importance to the business case.
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• • Other issues for management to consider that you think are vital for them to survive and make a profit.

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On Jan 1, 2022, Voguie is attempting to budget cash flows through Mar 31, 2022. On this latter date, an unsecured note will be payable in the amount of $3 million, at 2% per annum. This amount was borrowed on Sep 30, 2021 to carry the company through the seasonal peak in Oct through Dec 2021. Cash Interest payment are settled monthly. The company only transact on credit sales. A discount of 3% is given to all customers who pay within one month. 50% of the accounts receivable will be received in the month of sale. 30% will be collected in the following month, and 20% will be received 2 months after sale. There is a 5% provision for bad debt for accounts receivable owing 2 months after sale. Projected and Actual Sales are: October November December January February March April Projected Sales ($) 5 700 000 4 800 000 4 800 000 4 700 000 5 200 000 5 300 000 5 000 000 October November December January February March April Actual Sales ($) 5 600 000 5 700 000 6 000 000 Purchases are made on basis of 70% of the following month's projected sales. Half of the purchases are paid for in the month of purchase, and a 10% prompt settlement discount is received. The remainder is paid in full the following month. On Jan 1, 2022, Voguie is attempting to budget cash flows through Mar 31, 2022. On this latter date, an unsecured note will be payable in the amount of $3 million, at 2% per annum. This amount was borrowed on Sep 30, 2021 to carry the company through the seasonal peak in Oct through Dec 2021. Cash Interest payment are settled monthly. The company only transact on credit sales. A discount of 3% is given to all customers who pay within one month. 50% of the accounts receivable will be received in the month of sale. 30% will be collected in the following month, and 20% will be received 2 months after sale. There is a 5% provision for bad debt for accounts receivable owing 2 months after sale. Projected and Actual Sales are: October November December January February March April Projected Sales ($) 5 700 000 4 800 000 4 800 000 4 700 000 5 200 000 5 300 000 5 000 000 October November December January February March April Actual Sales ($) 5 600 000 5 700 000 6 000 000 Purchases are made on basis of 70% of the following month's projected sales. Half of the purchases are paid for in the month of purchase, and a 10% prompt settlement discount is received. The remainder is paid in full the following month.

Answer rating: 100% (QA)

Forecasted Cash Budget for January to March 2022 Month Cash Receipts Cash Disbursements Net Cash Flow January 2850000 2550000 300000 February 3210000 ... View the full answer