Sarah and Kate are meeting their bank manager Lynn Harvey next month. She has asked them to bring a Cash Budget showing planned receipts and payments for the next six months. Using the following figures. draw up the Cash Budget for the Croeso Hotel.

(a) All takings in the bar and leisure complex are for cash. 60% of the accommodation and restaurant sales are for cash. with the balance being received the following month.

(b) The food and beverage costs amount to 50% of sales. These costs are paid for each month.

(c) The hotel has leasing payments of 700 a month.

(d) Fixed costs are 12.500 a month. 25% payable in the month in which they are incurred. the balance being paid one month later.

(e) The hotel must pay a 34.000 tax bill in April.

(f) Opening balance is 45.000.

Answer rating: 100% (QA)

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