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Accounting and Finance for Business

   

Added on  2023-03-31

7 Pages884 Words259 Views
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Accounting and finance for business

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Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
a)..................................................................................................................................................3
b)..................................................................................................................................................3
Question 3........................................................................................................................................4
a)..................................................................................................................................................4
b)..................................................................................................................................................4
c)..................................................................................................................................................5
d)..................................................................................................................................................5
References........................................................................................................................................7

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Question 1
Cash budget:
Particulars October Novembe
r
December
Opening balance 78010 174495 832020
Cash Sales 45000 47500 49000
Receipt of Loan 0 550000 0
Receipts from Accounts
Receivable
220000 244920 284020
Interest Received 2210 2305 2430
Receipts 345220 1019220 1167470
Wages 50000 50000 70000
Prepayments 0 0 9890
Office Furniture 16050 18950 0
Payments of Accounts
Payable
89675 103250 106950
Administrative Expense 15000 15000 15000
Payments 170725 187200 201840
Closing balance 174495 832020 965630
Question 2
a)
Particulars 1 year
old
2 year
old
3 year
old
Total
Sales mix 50000 35000 15000 100000
Sales mix % 0.5 0.35 0.15
Sale price 12 18 30
Variable cost 8 12 18
Contribution per unit 4 6 12
Weighted average contribution margin 5.9
Fixed cost 220500
Total break-even units 37373
Breakeven units 18686 13081 5606
b)
Particulars 1 year
old
2 year
old
3 year
old
Total

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