quiz

CompuData owns a chain of five shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of May 2014 it had an overdraft of $100,000. In view of this, CompuData’s managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information:

June
$000s
July
$000s
August
$000s
September
$000s
October
$000s
November
$000s
Cash sales (cash collections)
250
200
250
350
200
80
Cash purchases
180

160=
360
130
40
50
60
Wages and salaries
40
40
50
40
40
45
Rent

80

Rates

60
Other expenses
25
25=65
25
25
25
25
Refurbishing shops

80

Total cash disbursements
245
225
285
185
115
190 Refer to the table above. The projected cash balance for the end of July is:
Select one:
a. $(25,000).
b. $(20,000)
c. $(100,000)
d. $25,000.
e. $(120,000).

Mildura Company is planning to purchase non-current assets at a cost of $200,000. The planned delivery date is 1st September 2014. A deposit of $10,000 is to be paid on 1St July 2014. The amount that will appear in the cash budget for July 2014 is:
Select one:
a. $200,000 outflow.
b. $190,000 outflow.
c. $10,000 outflow.
d. $10,000 inflow.
e. $190,000 inflow. I think the answer is e. $190,000 inflow. Is that correct? 10,000 outflow
Wodonga Company collects 20 per cent of a month’s sales revenue in the month of sale, 70 per cent in the month following sale, and 6 per cent in the second month following sale. The remainder is uncollectible. The budgeted sales revenue for the next four months is:

January
February
March
April
Budgeted sales revenue
$200,000
$300,000
$350,000
$250,000 Cash collections in April are budgeted to be:

Sydney Ltd has provided you with the following budget information for June: