You are the manager of Box Office Cinemas who are in the business of manufacturing and...

 

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You are the manager of Box Office Cinemas who are in the business of manufacturing and Installing home theatre systems for high end customers. At 1 January 2022, the business had a bank balance of $37,200. Provided below are estimates for receipts and payments for the three months ending 31 March 2022: Box Office Cinemas Receipts Sales Proceeds from the sale of old non-current assets Payments Salaries and wages Supplies New equipment Utilities Sales are received as follows: 50% in month of sale 30% in month following sale 20% in second month following sale January $ February March $ 114,000 126,000 52,500 49,500 54,000 10,500 12,000 82,500 31,500 34,500 150,000 61,500 8,250 39,000 Required (approximately 250 words): a) You are to prepare a monthly cash budget for the three months ending 31 March 2022 to calculate an expected cash at bank figure which your accountant will review. Please ensure you include an overall total column and show all your workings as marks are allocated between workings and the final answer. Note: You may wish to compile your cash budget in excel and copy it into your word report. b) Explain the importance of the Cash Budget to the business and how it helps the business to manage its finances c) Based on the budget you have compiled, draw an overall conclusion as to the current cash position of Box Office Cinemas. This answer will be reviewed based on the calculations you have compiled so please ensure your answer is consistent with your figures. You are the manager of Box Office Cinemas who are in the business of manufacturing and Installing home theatre systems for high end customers. At 1 January 2022, the business had a bank balance of $37,200. Provided below are estimates for receipts and payments for the three months ending 31 March 2022: Box Office Cinemas Receipts Sales Proceeds from the sale of old non-current assets Payments Salaries and wages Supplies New equipment Utilities Sales are received as follows: 50% in month of sale 30% in month following sale 20% in second month following sale January $ February March $ 114,000 126,000 52,500 49,500 54,000 10,500 12,000 82,500 31,500 34,500 150,000 61,500 8,250 39,000 Required (approximately 250 words): a) You are to prepare a monthly cash budget for the three months ending 31 March 2022 to calculate an expected cash at bank figure which your accountant will review. Please ensure you include an overall total column and show all your workings as marks are allocated between workings and the final answer. Note: You may wish to compile your cash budget in excel and copy it into your word report. b) Explain the importance of the Cash Budget to the business and how it helps the business to manage its finances c) Based on the budget you have compiled, draw an overall conclusion as to the current cash position of Box Office Cinemas. This answer will be reviewed based on the calculations you have compiled so please ensure your answer is consistent with your figures.

Answer rating: 100% (QA)

a Cash Budget for period JanMar22 Opening bank balan ce AddReceipts From sales of current month From ... View the full answer