Budget Report

BUDGET REPORT

Contents
MAIN BODY.......................................................................................................................................3
PART A.............................................................................................................................................3
PART B.............................................................................................................................................4
PART C.............................................................................................................................................5
REFERENCES....................................................................................................................................7

MAIN BODY
PART A
1. Preparation of cash budget
April May June July August September
Opening bal 90 690 (2,990) (3,870) (520) 6,430
Credit sales 8,000 6,000 11,000 12,350 14,000 13,250
Cash sales 600 620 900 500 350 800
Old vehicle
trade 310
Total cash
receipts 8,690 7,310 9,220 8,980 13,830 20,480
Expenses
Purchases 5,800 8,000 8,700 6,300 5,200 5,000
Delivery vehicle 1,250
Loan Payment 1,000
Corporation tax 100 940
Other overhead 2,200 2,200 2,200 2,200 2,200 2,200
Total cash
expense 8,000 10,300 13,090 9,500 7,400 7,200
Closing balance 690 (2,990) (3,870) (520) 6,430 13,280
2. Analysis of cash flow- In accordance of above prepared cash flow this can be stated that in
three months April, May, June there is negative cash flow. Though, in upcoming months the
cash flow became positive and this has been increased in an effective manner which ended by
7600 Pounds in month of September.
Solution- In accordance of above prepared cash flow this can be suggested that they should
need to eliminate those activities which lead to more number of cash expenses. As well as
they should focus on those aspects which lead to cash receipts like cash sales.
3. Five source of finance available: