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management accounting & decision making - Essay Example

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Task 1 Cash Budget   Months Particulars April May June July August September Revenue 27,000 41,850 67,500 111,600 125,550 81,000 Cash Purchases 5,400.0 8,370.0 13,500.0 22,320.0 25,110.0 16,200.0               Cash Sales 8,100 12,555 20,250 33,480 37,665 24,300 Cash from credit sales - - 18,900.0 29,295.0 47,250.0 78,120.0 Cash Purchases (1,080.0) (1,674.0) (2,700.0) (4,464.0) (5,022.0) (3,240.0) Credit Purchases - (4,320.0) (6,696.0) (10,800.0) (17,856.0) (20,088.0) Labor Cost (5,400) (8,370) (13,500) (22,320) (25,110) (16,200) Overhead Cost - (6,750) (10,463) (16,875) (27,900) (31,388)               Net Cash 1,620 (8,559) 5,792 8,316 9,027 31,505 Opening Cash 125,000 126,620 …

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management accounting & decision making

As at September 30, 20X0 Property, Plant and Equipment 1,840,000 Less: Depreciation (133,167) Net Book Value 1,706,833 Inventory 9,000 Receivables 144,585 Cash 172,700 Total Assets 2,033,118 Owner's Capital 2,000,000 Profit for the year (92) Creditors 12,960 Overhead cost payable 20,250 Total capital and liabilities 2,033,118 The above statement presents the cash budget, income statement and the statement of financial position for the six months ended September 30. In the forecasting of the cash budget, the effect of inflation has been ignored. During the six months period the inflation is expected to rise and it will impact all the variables of the projections. In addition, it has been assumed, in the cash flow forecast, that the credit sales will be settled at the end of two months. ...
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