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Finance Assignment

The document outlines the cash inflow and outflow projections for ACME Company from May to November, detailing sales, collections, and expenses. It highlights a net cash flow deficit in several months, with a notable surplus in October and November. The cash budget also indicates minimum cash requirements and ending balances for each month, showing a total cash inflow of approximately $4,090,000 and total cash outflow of about $3,081,100.

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44 views2 pages

Finance Assignment

The document outlines the cash inflow and outflow projections for ACME Company from May to November, detailing sales, collections, and expenses. It highlights a net cash flow deficit in several months, with a notable surplus in October and November. The cash budget also indicates minimum cash requirements and ending balances for each month, showing a total cash inflow of approximately $4,090,000 and total cash outflow of about $3,081,100.

Uploaded by

tahirfatima009
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ACME COMPANY (Expected inflow outflow & cash budget)

[Link] Inflow
Actual Months Forcast Months
Months May June July August September October November

Sales 300,000 290,000 425,000 500,000 600,000 625,000 650,000


12% of the sale collected during the month - - 51,000 60,000 72,000 75,000 78,000
less:3% of discount into the current month of sale - - (1,530) (1,800) (2,160) (2,250) (2,340)
Total Receiveable - - 49,470 58,200 69,840 72,750 75,660
75% Lagged 1 month sale - - 217,500 318,750 375,000 450,000 468,750
13% Lagged 2 month sale - - 39,000 37,700 55,250 65,000 78,000

Total Cash Inflow - - 305,970 414,650 500,090 587,750 622,410

[Link] Outflow
Actual Month Forcasting Month
Months May June July August September October November

Purchase Raw material 60% of sale in following month 300,000 255,000 300,000 360,000 375,000 390,000 420,000
Firm pay 100% cash purchases in the current month - - 255,000 300,000 360,000 375,000 390,000
6% Wages & salaries paid monthly on the current month sale - - 25,500 30,000 36,000 37,500 39,000
2% Monthly lease payment on the current month sale - - 8,500 10,000 12,000 12,500 13,000
3% Monthly Admin Expenses on sale - - 12,750 15,000 18,000 18,750 19,500
R&D Expenses - - - 60,000 72,000 75,000 -
Prepayment Insurance - - - - - - -
Miscellaneous Expenditure - - 15,000 20,000 25,000 30,000 35,000
Tax will be paid - - - - 40,000 - -

Total Cash Outflow - - 316,750 435,000 563,000 548,750 496,500

[Link] Budget

Months May June July August September October November

Total Cash Inflow 300,000 290,000 305,970 414,650 500,090 587,750 622,410
Less: Total Cash Outflow - - (316,750) (435,000) (563,000) (548,750) (496,500)
Net Total - - (10,780) (20,350) (62,910) 39,000 125,910
Add: Begning Balance - - 15,000 4,220 (16,130) (79,040) (40,040)
Ending Balance - - 4,220 (16,130) (79,040) (40,040) 85,870
Less: Minimun Cash Requirment - - (15,000) (15,000) (15,000) (15,000) (15,000)
Surplus - - - - 70,870
Deficit - - (10,780) (31,130) (94,040) (55,040) -
December Total

700,000 4,090,000
84,000 420,000
(2,520) (12,600)
81,480 407,400
487,500 2,317,500
81,250 356,200

650,230 3,081,100

December January Total

420,000 700,000 3,820,000


420,000 - 2,100,000
42,000 - 210,000
14,000 - 70,000
21,000 - 105,000
- - 207,000
24,000 - 24,000
40,000 - 165,000
45,000 - 85,000

606,000 - 2,966,000

December Total

650,230 3,081,100
(606,000) (2,966,000)
44,230 115,100
85,870 (30,120)
130,100 84,980
(15,000) (90,000)
115,100 185,970
- (190,990)

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