Workings accounts receivable collection schedule

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Workings: Accounts Receivable Collection Schedule January February March Receipts from sales in: $ $ $ November December January 23,400 February 37,700 TOTAL COLLECTIONS Cash flow plan January February March Managing Finance, Assessment No. 1 Page 29 v1.1, Last updated on 08/09/2014
T-1.8.1 $ $ $ Balance b/fwd. Cash receipts (from credit sales) 23,400 37,700 27,300 Total Funds Available Payments Accounts Payable 52,650 53,300 58,175 Wages 3,600 3,470 3,380 Total Payments 56,250 56,770 61555 Balance c/fwd. What went wrong?
What are the consequences of those wrongs?
What managerial actions can be taken to rectify the errors?
Task 23: Asset Management - Managerial Decisions Managing Finance, Assessment No. 1 Page 30 v1.1, Last updated on 08/09/2014
T-1.8.1 You are the owner of a small business. In the new financial year you are planning for business expansion. As part of that you are required to acquire new equipments and IT equipment to increase your production level. You have approached this issue to your Chief Financial Officer (CFO). CFO advised that there are three options available to acquire new equipment: Buying, leasing or hire purchase. All have some advantages along with disadvantages. Identify the advantage and disadvantages of them and recommend which one is preferable if you are to buy new IT equipment. Leasing: The Benefits Leasing keeps your equipment up-to-date. Computers and other tech equipment eventually become obsolete. With a lease, you pass the financial burden of obsolescence to the equipment leasing company. For example, let's say you have a two-year lease on a copy machine. After that lease expires, you're free to lease whatever equipment is newer, faster and cheaper. (This is also a reason some people prefer to lease their cars.) In fact, 65 percent of respondents to a 2005 Equipment Leasing Association survey said the ability to have the latest equipment was leasing's number-one perceived benefit. You'll have predictable monthly expenses. With a lease, you have a pre-determined monthly line item, which can help you budget more effectively. Thirty-five percent of respondents to the Equipment Leasing Association's survey said this was leasing's second-highest benefit. You pay nothing up front. Many small businesses struggle with cash flow and must keep their coffers as full as possible. Because leases rarely require a down payment, you can acquire new equipment without tapping much-needed funds. You're able to more easily keep up with your competitors. Leasing can enable your small business to acquire sophisticated technology, such as a voice over internet protocol (VoIP) phone system, that might be otherwise unaffordable. The result: You're better able to keep up with your larger competitors without draining your financial resources. Leasing: The Downsides You'll pay more in the long run. Ultimately, leasing is almost always more expensive than purchasing. For example, a $4,000 computer would cost a total of $5,760 if leased for three years at $160 per month but only $4,000 (plus sales tax) if purchased outright. You're obligated to keep paying even if you stop using the equipment. Depending on the

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