Exercise (10)

A company has the following information:

The cost of marketing and
administration
Advertising 500 Supplies of 3000
administration
Commission sales 800 Cost of travel 2000
Sales laborious 1500 Administrative 30000
cost
The indirect overhead cost:
Materials 6000
Labor 3000 (Variable 2000 L.E.)
Power 1000
Insurance 2000
Depreciation 600
Rent 400
Required:
Prepare marketing, administrative and
overhead budgets
Example:
ABC budgeted credit sales in the
first quarter of 2004 will be follows:
January 60000 February 80000
March 90000The company expects
to collect 80% of a month’s sales in
the month of sales and 20% in the
following month.
Required: Prepare cash receipts
budget.
• Exercise (7):
We have the following credit sales for the following months in 2000:
January 10000
February 5000
March 15000
April 20000
May 10000
June 20000
Additional data:
The collection are settled according to the following patterns:
60% collected the month of sale.
30% collected the month following it.
10% collected the month after.
There are some amounts remained from credit sales of declared 99 for
December 5.000 L.E. and of November 99 for 2000L.E.
Required:
Prepare the cash receipts budget.
• Exercise (13):
We collected this information:
The opening cash balance on the 1st of January is 25.000 L.E.
The budgeted sales are as follows:
December 65.000 L.E.
January 95.000 L.E.
February 95.000 L.E.
March 105.000 L.E.
The analysis of records shows that debtors settle according to the following patterns:
50% collected the month of sale, 30% the following month and 20% the month after.
The budgeted purchases are as follows:
January 65.000 L.E.
February 50.000 L.E.
March 55.000 L.E.
The payments are settled according to the following patterns: 80% the month of
purchase and,20% the following month.
. Wages 8.000 L.E. per month.
Overhead 17.000 L.E. (include 4.000 L.E. depreciation).
Tax on February 20.500 L.E.
Expenses 1.000 L.E. / month.
Minimum reserve 1.000 L.E. for each month.
Required:
Prepare the cash flow budget for January, February and March.
Exercise (12):
We collected the following information for the three months: January,
February and March.
January February March
Collected cash 20.000 10.000 41.000
Revenue 2.000 2.000 3.000
Tax 2.000 2.000 2.000
Wages 5.000 - -
Expenses 3.000 3.000 3.000
Overhead 4.000 4.000 4.000
Rent 1.000 1.000 1.000
Purchase cars - - 50.000
Minimum Reserve 12.000 8.000 1.000
Required:
Prepare the cash flow budget for the three months if you know that the
opening balance is 10.000 L.E.
Exercise
The budgeted credit is as on as follows:
November 80.000 L.E.
December 90.000 L.E.
January 75.000 L.E.
February 75.000 L.E.
March 80.000 L.E.
The analysis of records shows that debtors
settle according to the following patterns:
60% collected the month of sale.
25% the following month.
And 15% the month after
Opening cash balance in January is 30.000 L.E.
Wages 15.000 per month.
Overhead 20.000 L.E. (Include 5.000
depreciation) for Jan and Feb.
Taxes on February 8.000 L.E.
Collected interest 25.000 L.E. on March.
Minimum reserve for each month is 15.000.
Required:
Prepare the cash flow budget for the January-
February- March