Business Finance: Cash Budget, Expenses, Drawing, Profits, and Financial Terms

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The business finance means managing and raising of funds through organization.
Planning, control and analysis operation are main responsibilities of financial managers. The
financial manager is commonly close to top of business structure of a company. Business finance
is also known corporate finance in organization world. The report includes cash budget for the
trading company for six months which is ended on 31 December 2022. Moreover, this report will
discuss the statement “cash and profits are same” in brief. Furthermore, this report will
differentiate between expenses and drawing, prepayments and accruals, net profits and gross
profits, cash flow statement and capital expenditure. The report will also some financial terms.
MAIN BODY
Cash budget
July August September October November December
Opening balance £10000 £22716.03 £23254.44 £20121.11 £18949.07 £9567.4
Cash receipt £3800 £2890 £2050 £3450 £5000
Loan £15000 0 0 0 0 0
Total cash receipts £25000 £26516.03 £26144.44 £22171.11 £22399.07 £14567.4
payments
Purchases £1098.96 £2076.59 £3693.33 £2037.03 £2266.67 £2785.99
Telephone costs 0 0 £420 0 0 £420
electricity 0 0 £725 0 0 £725
Accountant fees £250 £250 £250 £250 £250 £250
Other expenses £90 £90 £90 £90 £90 £90
drawing £725 £725 £725 £725 £725 £725
Delivery costs £120 £120 £120 £120 0 0
Purchase van 0 0 0 0 £9500 0
Total cash £2283.93 £3261.59 £6023.33 £3222.04 £12831.67 £4995.59

payments
Closing balance £22716.03 £23254.44 £20121.11 £18949.07 £9567.4 £9571.48
working
Purchase calculation
Sales 3800 2890 2050 3450 5000 2680
Gross profit margin 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
Purchases 2814.8 2140.7 1518.5 2555.56 3703.7 1985.18
Purchase (liner
shirts) 2680
Total purchase £5494.81 £2140.74 £1518.51 £2555.56 £3703.77 £1985.18
July August September October Nov. Dec.
Same month 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%
30% in next
month 30.00% 30.00% 30.00% 30.00% 30.00%
50% in next
month 50.00% 50.00% 50.00% 50.00%
Extra
purchase 20.00% 30.00% 50.00%
Amount
562.96 428.14 303.7 511.11 740.74 397.03
536 844.44 642.22 455.55 766.67 1111.11
804 1407.4 1070.37 759.23 1277.78