Cash Budget for Leisure Wear: Comment and Recommendations

Management
accounting
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Management Accounting 1
Contents
Cash budget (Comment/recommendations)....................................................................................2
References........................................................................................................................................4
Appendix..........................................................................................................................................5
Basic input data area....................................................................................................................5
Cell formula area.........................................................................................................................6

Management Accounting 2
Cash budget (Comment/recommendations)
Cash budget is estimation link to the cash inflows and outflows of any business in the certain
time (Kaplan and Atkinson, 2015). The company Leisure Wear, which is a chain of the 15
women’s clothing stores, has prepared the cash budget for the year 2019. The below given is the
cash budget for the year 2019: -
Cash budget
Mo
nth
s
Sa
les
Cas
h
sal
es
Cr
edi
t
sal
es
col
lec
te
d
To
tal
a
m
ou
nt
re
cei
ve
d
Pu
ch
as
e
Pa
id
su
pp
lie
r
Va
ria
ble
ex
pe
ns
es
Fix
ex
pe
ns
es
Ta
x
pa
ym
en
t
Adve
rtise
ment
Tot
al
pa
ym
ent
s
Op
en
in
g
a
m
ou
nt
Cl
os
in
g
a
m
ou
nt
Dec
-18
26
52
00
Jan
uar
y
51
00
00
408
000
40
80
00
26
52
00
91
80
0
17
00
00
261
800
14
62
00
50
00
0
19
62
00
Feb
ruar
y
51
00
00
408
000
10
20
00
51
00
00
30
94
00
26
52
00
91
80
0
17
00
00
527
000
-
17
00
0
19
62
00
17
92
00
Mar
ch
59
50
00
476
000
10
20
00
57
80
00
35
36
00
26
52
00
10
71
00
17
00
00
27
00
0
4000
0
609
300
-
31
30
0
17
92
00
14
79
00
Apri
l
68
00
00
544
000
11
90
00
66
30
00
35
36
00
30
94
00
12
24
00
17
00
00
601
800
61
20
0
14
79
00
20
91
00
May
68
00
00
544
000
13
60
00
68
00
00
30
94
00
35
36
00
12
24
00
17
00
00
646
000
34
00
0
20
91
00
24
31
00
Jun
e
59
50
00
476
000
13
60
00
61
20
00
30
94
00
35
36
00
10
71
00
17
00
00
27
00
0
6000
0
717
700
-
10
57
00
24
31
00
13
74
00
July 59 476 11 59 35 30 10 17 586 85 13 14

Management Accounting 3
50
00 000
90
00
50
00
36
00
94
00
71
00
00
00 500 00
74
00
59
00
Aug
ust
68
00
00
544
000
11
90
00
66
30
00
39
78
00
30
94
00
12
24
00
17
00
00
601
800
61
20
0
14
59
00
20
71
00
Sep
tem
ber
76
50
00
612
000
13
60
00
74
80
00
39
78
00
35
36
00
13
77
00
17
00
00
27
00
0
4500
0
733
300
14
70
0
20
71
00
22
18
00
Oct
obe
r
76
50
00
612
000
15
30
00
76
50
00
44
20
00
39
78
00
13
77
00
17
00
00
705
500
59
50
0
22
18
00
28
13
00
Nov
em
ber
85
00
00
680
000
15
30
00
83
30
00
66
30
00
39
78
00
15
30
00
17
00
00
720
800
11
22
00
28
13
00
39
35
00
Dec
em
ber
12
75
00
0
102
000
0
17
00
00
11
90
00
0 0
44
20
00
22
95
00
17
00
00
27
00
0
6000
0
928
500
26
15
00
39
35
00
65
50
00
Jan-
20
25
50
00
25
50
00 0
66
30
00 0
17
00
00
833
000
-
57
80
00
65
50
00
77
00
0
The cash budget shows that there is no downfall in closing balance that means the amount is in
positive number. The highest closing balance is registered in the month of December 2019 due to
which there is high amount of the closing balance that means that in this month the company has
registered high amount of sales. Further, this has been found that in the entire year there was up
and down in the amount of the closing balance which might be due to decrease in sales, increase
in expenses (Bromwich and Scapens, 2016).
It is suggested to the company to pull more cash in the months like June and July in which the
minimum amount was recorded. This can be done by the company by reducing the amount of
expenses in the particular month.
Further, it is suggested to the company invest their earning in the government bonds as this will
help the company to attain the high revenue in the form of return. The GTAUD10Y: GOV