What is cash flow give one example of how an

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3. What is cash flow? Give one example of how an organisation can control its cashflow. (5 Marks)
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4. Cash (Flow) Budget Prepare a Cash Flow Statement for months 1-6 using the following forecast details: 10 Marks) Months 1 2 3 4 5 6 Cash Receipts Cash From Sales $9,000 $10,800 $12,600 $19,800 $21,600 $25,200 Cash from Debtors $30,000 $1,000 $1,200 $1,400 $2,200 $2,400 Capital Cash Payments Stock Purchases $17,000 $7,660 $15,070 $16,440 $19,180 Advertisin g and Promotion $3,000 $1,000 $1,000 $1,000 Rent $1,733 $1,733 $1,733 $1,733 $1,733 $1,733 Wages $1,933 $1,933 $1,933 $1,933 $1,933 $1,933 Other $5,106 $606 $1,056 $606 $606 $1,056
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Expenses Asset Purchases $3,400 Drawings $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 Forecast Cash Flow Statement for Year Ended Mth 1 $ Mth 2 $ Mth 3 $ Mth 4 $ Mth 5 $ Mth 6 $ Cash position- start of month $39,000 $11,800 $13,800 $21,200 $23,800 $27,600 Cash Receipts $39,000 $11,800 $13,800 $21,200 $23,800 $27,600 Cash Sales $9000 $10,800 $12,600 $19,800 $21,600 $25,200
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Cash from Sales Debtors $30,000 $1000 $1200 $1,400 $2,200 $2,400 Proceeds from asset sales $3400 Capital contribution s Borrowings Total cash receipts Less Cash Payments Advertising $1,733 $1,733 $1,733 $1,733 $1,733 $1,733 Stock Purchases $17,000 $7,660 $15,070 $16,440 $19,180 Wages $1933 $1933 $1933 $1933 $1933 $1933 Rent $1733 $1733 $1733 $1733 $1733 $1733 Loan Repayments
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Other Expenses $5,106 $606 $1,056 $606 $606 $1,056 Asset Purchases $3400 Drawings $1600 $1600 $1600 $1600 $1600 $1600 Total cash Payments Net Cash Flow Cash position – end of month 5. When collecting data for analysis what are the two sources we can get data from? (2 Marks) 6. How can data collected help an organisation determine the effectiveness of their financial management processes? (3 Marks) 7. What is a financial plan and what does a financial plan include? (5 Marks)
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8. What are some factors that could affect a budget? (4 Marks) 9. Budget/Financial Plan Exercise Using the following information work out the answers for the questions below: (6 Marks) • 160-seat restaurant • Average spent at lunch $16.50 • Lunch seat turnover 80% • Average spent at dinner $25.50 • Dinner seat turnover 70% • Restaurant opens for lunch 260 days a year • Restaurant opens for dinner 312 days a year a. What are the projected sales for lunch? (2 Marks) $16.50x 128 seats= $2112 b. What are the projected sales for dinner? (2 Marks) $25.50x112 seats = $2856 c. What are the projected total annual sales for the restaurant? (2 Marks) Annual lunch sales- $2112 x 260 days=$ 549,120 Annual dinner sales- $ 2856 x 312 days = $891,072
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