Understanding Finance: Cash Budget, Sources of Finance, Issue of Shares, Financial Ratios and Budgeting

Understanding Finance

Contents
INTRODUCTION...........................................................................................................................................3
PART A.........................................................................................................................................................3
PART B.........................................................................................................................................................6
PART C.........................................................................................................................................................7
REFERENCES..............................................................................................................................................10

INTRODUCTION
The study and structure of money, commodities, as well as other investment funds is
referred to as finance. Public finance, corporate finance, and personal finance are the three
primary kinds that finance may be split into. Social finance and behavioral finance are two more
contemporary areas of finance. Traditionally, finance is classified into three categories: Tax
codes, public spending, budgeting methods, stabilization policies and tools, debt difficulties, and
other governmental problems are all covered under public finance. Corporation finance is the
management of a company's assets, liabilities, earnings, and debts.
PART A
1. Cash Budget
Cash Budget £'000
Apr May Jun Jul Aug Sep
Borrowings
12,57
0
Opening balance (1,600) (3,180)
9
0 690
4,89
0
Cash Sales 600 620 900
50
0 350
80
0
Cash collection
11,00
0 12,350
14,00
0
Total receipt 600 (980) (2,280)
11,59
0 13,390
19,69
0
Less:
Vehicle replacement
1,25
0
Other overheads 2,200 2,200 2,200
2,20
0 2,200
2,20
0
Purchases 8,000
8,70
0 6,300
5,20
0
Total Payment 2,200 2,200 10,200
10,90
0 8,500
8,65
0
Cash at the end (1,600) (3,180) (12,480)
69
0 4,890
11,04
0
2. Suggestion