Analyzing Budgets and Making Decisions

TASK-5

Analyzing budgets and making appropriate
decisions
Revenues/Expenses Janua
ry
Febru
ary
March April May June
Expected sales 32000 48000 60000 65000 72000 90000
Total cash revenues 32000 48000 60000 65000 72000 90000
Cash payments
Total Purchase 20000 28000 40000 47000 65000 75000
Purchase of furniture
and equipment
7000 3000 2000 1000 1000
Other operational
expenses
2000 2200 2200 2350 2500 2550
Administrative
expenditures
800 1000 1000 1200 1200 1250
Electricity bill 500 500 800 1000 1200 1650
Total cash expenses 30300 31700 47000 53550 70900 81450
Net cash flow
(Surplus/deficit)
1700 16300 13000 11450 1100 8550
Opening cash balance - 1200 17500 30500 41950 43050

Cont...
 Cash budget reflects that surplus of the business is varying
time to time
 Cash balance in the month of May is 1100 which was
greater in the previous month

Suggestions
 Sainbury must have proper control over the business flow
 corporation should apply strategy to reduce the flow of
expenses and establish proper security and safety for the
business
 personnel can be provided training to speed the production
activities and positive impact of the same can be seen in
term of low cost.