Business Management

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student
Name of the University
Authors Note
Course ID

1BUSINESS MANAGEMENT
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to A:..........................................................................................................................2
Answer to B:..........................................................................................................................2
Answer to question 2:.................................................................................................................3
Answer to A:..........................................................................................................................3
Answer to B:..........................................................................................................................4
Answer to question 3:.................................................................................................................5
Answer to A:..........................................................................................................................5
Answer to B:..........................................................................................................................6
References:.................................................................................................................................8

2BUSINESS MANAGEMENT
Answer to question 1:
Answer to A:
Name Sunshine Ltd
Cash Budget for the six months ending 31 October 2018
July August September October
₵ ₵ ₵ ₵
Receipts
Cash sales 11700 12600 10800 9000
Credit sales 11000 14300 15400 13200
22700 26900 26200 22200
Payments
Purchases 12000 16000 18000 14000
Overheads 8000 8000 8000 8000
---------- ---------- ---------- ----------
20000 24000 26000 22000
====== ====== ====== ======
Net cash flow 2700 2900 200 200
Add bank balance at
beginning of the month
7200 4500 1600 1400
Bank balance at end of
month
4500 1600 1400 1200
====== ===== ===== ======
Answer to B:
Four problems related to budgeting are as follows;
a. Inaccuracy: Budget is generally based on the set of assumptions which is not very far
from operating conditions based on which it was formulated (Weygandt et al. 2015).
On any change in business environment the cost structure or revenue of business may
change drastically causing the actual result to move off from the anticipated budget.