Budget Report for Hamble Ltd: Cash Budget, Sources of Finance, Financial Ratios, Flexible Sales Budget, and Factors Affecting Demand

Budget report

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
PART A......................................................................................................................................3
1. Cash Budget.......................................................................................................................3
2. Examining the cash budget................................................................................................3
3. Sources of finance available to Hamble Ltd......................................................................3
4. Raising finance through the issue of shares.......................................................................4
PART B......................................................................................................................................5
1. Computation of financial ratios..........................................................................................5
2. Analysis of the ratios..........................................................................................................6
PART C......................................................................................................................................7
1. Flexible sales budget for quantities of 200,000 units and 300,000 units...........................7
2. Factors contributing to increase or decrease in demand....................................................7
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
For every business organization, the preparation of the budget report is vital and is
very crucial for managing the funds of the organization. It helps in dealing with the money of
the business adequately. This report gives a comprehension about the kinds of examination
which are completed for taking business choices with respect to Hamble Ltd.
PART A
1. Cash Budget
2. Examining the cash budget
It can be analyzed from the above that the company should look at its sales as in
May month, it has declined sharply and in addition to this, the expenses incurred are also high
which has led to affecting the cash flow of the business. Hamble Ltd can effectively manage
its cash flow position through the way of handling the cost in respect to the payment made to
the suppliers as it will help in reducing the negative effect it has on the cash inflows. Apart
from this, can also try to received payment from its debtors on credit sales by implementing
attracting strategies or discounts which will help in generating more cash inflow.
3. Sources of finance available to Hamble Ltd
Source of finance Advantages Disadvantages
Personal investment  It generates no debt
obligation.
 Usage of personal
savings might result