Cash Budget, Break-even Analysis, Net Present Value

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ACC10707

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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........................................................................................................................................6

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Question 1
Cash budget
Particulars October November December
Opening balance 78010 174495 832020
Cash Sales 45000 47500 49000
Receipts from Accounts
Receivable
220000 244920 284020
Receipt of Loan 0 550000 0
Interest Received 2210 2305 2430
Total income 345220 1019220 1167470
Wages 50000 50000 70000
Office Furniture 16050 18950 0
Prepayments 0 0 9890
Administrative Expense 15000 15000 15000
Payments of Accounts
Payable
89675 103250 106950
Total payments 170725 187200 201840
Closing cash balance 174495 832020 965630
Question 2
a)
Particulars 1 year
old
2 year
old
3 year
old
Total
Sales mix 50000 35000 15000 100000
Selling price 12 18 30
Variable cost 8 12 18
Contribution 4 6 12
Sales mix % 0.5 0.35 0.15
Weighted contribution
margin
200000 210000 180000 590000
Weighted average contribution margin 5.9
Fixed cost 220500
Total break-even units 37373
Breakeven units 18686 13081 5606
b)