T 181 read the following statements and write if you

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T-1.8.1 Read the following statements and write if you agree or disagree with the statements. Your analysis must be supported by argument. (2 Mark) 1. Cash flow management means managing the cash moving in and out of your business.
1. Cash outflows usually occur after cash inflows.
2. Two important benefits of cash flow management are to identify future cash flow problems and to reduce the amount of time between inflows and outflows.
3. Three of the following are some of the most important components of cash flow. Which one is not? B C D
4. Too much stock may negatively affect your sales ability and your relationship with customers.
Managing Finance, Assessment No. 1 Page 25 v1.1, Last updated on 08/09/2014
T-1.8.1 Week 6 Task 22: Part a: Accounts Receivable Collection Schedule and Cash Flow Statement Part b: Create an EXCEL file and complete the calculations through using formula(3 Mark) Stock & Co., a manufacturing company, need to produce a cash flow budget as part of an overdraft application with their bank. The following are some of Stock’s budgeted figures: Credit sales $ Purchases $ Wages $ November 39 000 26 975 3 185 December 41 600 31 200 3 900 January 23 400 52 650 3 600 February 37 700 53 300 3 470 March 27 300 58 175 3 380 Budgeted cash at bank on 1 January is $5590. Though credit terms of sale are payment by the end of the month following the month of supply, Stock & Co. can expect half of the sales to be paid on the due date, with the other half being paid during the following month. Creditors are paid during the month following the month of supply. Wages are paid in the month they are owed. Utilising the following tables for format, prepare a cash budget for the quarter 1 January to 31 March 20XX. Managing Finance, Assessment No. 1 Page 26 v1.1, Last updated on 08/09/2014

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