100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary Financial management exercises CA$8.76   Add to cart

Summary

Summary Financial management exercises

 29 views  0 purchase
  • Course
  • Institution

Finman 332 notes. Perfect for A1! Includes components 1-4, covers all exercices and theory. Components 5 and 6 will be uploaded shortly

Preview 4 out of 48  pages

  • April 27, 2023
  • 48
  • 2022/2023
  • Summary
avatar-seller
COMPONENT 1 – CASH BUDGETS
PROBLEM 1 – CASH BUDGETING **


Cash receipts
Dec Jan Feb
Sales 4 000 000 1 000 000 1 500 000
Salary 120 000 120 000 120 000
Total 4 120 000 1 120 000 1 620 000


Cash payments
Dec Jan Feb
Purchases 3 740 000 1 240 000 1 240 000
Rent 50 000 50 000 50 000
Property tax 300 000
Total 4 090 000 1 290 000 1 290 000


Cash budget
Dec Jan Feb
Cash generated 30 000 (170 000) 330 000
Cash opening 10 000 40 000 (130 000)
Cash closing 40 000 (130 000) 200 000

,CLASS EXERCISE– CASH BUDGETING

The following cash budget is given to you:


Jaar / Year 1 2 3 4
Kontant gegenereer
Cash generated (50 000) (10 000) 45 000 40 000
Beginsaldo: Kontant
Opening balance: Cash 20 000 (30 000) (40 000) 5 000
Eindsaldo: Kontant
Closing balance: Cash (30 000) (40 000) 5 000 45 000
• The company requires a closing cash balance of R10 000 at the end of each year.
• Assume that all cash deficits will be financed by means of short-term loans.
• Any cash surpluses will first be used to redeem the previous years’ financing.
• Any additional cash surpluses that may remain can then be utilised to purchase
marketable securities.

Jaar / Year 1 2 3 4
Kontant gegenereer
(50 000) (10 000) 45 000 40 000
Cash generated
Beginsaldo: Kontant
20 000 10 000 10 000 10 000
Opening balance: Cash
Voorlopige kontant
(30 000) 0 55 000 50 000
Preliminary cash
Korttermynlening
40 000 10 000 (45 000) (5 000)
Short-term loan
Bemarkbare effekte
- . - . - . (35 000)
Marketable securities
Eindsaldo: Kontant
10 000 10 000 10 000 10 000
Closing balance: Cash
Year 1: Obtain ST loan of R40 000
Year 2: Obtain ST loan of R10 000
Year 3: Reduce ST loan by R45 000
Year 4: Reduce ST loan by R5 000 + buy marketable securities of R35 000

,PROBLEM 2 - CASH BUDGETING

Sales 60% during month, 30% following month, 10% 2 months after

Nov: 250 000 – (250 000 x 10%) = 225 000
Des: 450 000 – (450 000 x 10%) = 405 000
Jan: 200 000 –(200 000x 10%) = 180 000
Feb: 250 000 –(250 000 x 10%) = 225 000
Mar: 300 000 – (300 000 x10%) = 270 000
Apr : 350 000

2.1

KONTANT ONTVANGSTES
JAN FEB MAR
CASH RECEIPTS
Nov 22 500
Des 121 500 40 500
Jan 108 000 54 000 18 000
Feb 135 000 67 500
Mar 162 000
252 000 229500 247 500

JAN FEB MAR
Expected sales 200 000 250 000 300 000
Shoplifting (20 000) (25 000) (30 000)
Realised Sales 180 000 225 000 270 000

Current month: 60% 108 000 135 000 162 000
Next month: 30% 121 000 54 000 67 500
Two months: 10% 25 000 40 500 18 000
Total cash sales 252000 229500 247500


Purchases = (cost of sales + CB inventory) – OB inventory

Dec Purchases = [(70% x 450 000) + (30% x 450 000)] – (30% x 250 000)
= 375 000 (next 60% = 225 000 Jan)


Jan Purchases = [(70% x 200 000) + (30% x 200 000)] – (30% x 250 000)
= 65 000 (cur 40% =26 000 Jan) (next 60% =39 000 Feb)


Feb Purchases = (70% x 250 000) + (30% x 250 000)] – (30% x 200 000)

, = 190 000 (cur 40% =76 000 Feb) (next 60% =114 000 Mar)


Mar Purchases = [(70% x 300 000) + (30% x 300 000)] – (30% x 250 000)
=225 000 (cur 40% = 90 000 Mar)



KONTANT BETALINGS
JAN FEB MAR
CASH PAYMENTS
Purchases
Current month: 60% 26 000 76 000 90 000
Following month: 40% 225 000 39 000 114 000
Operating expenses 24 000 24 000 24 000
Equipment 20 000
Interest 25 000
Income tax 35 000
Total Cash Payments 295 000 164 000 263 000



JAN FEB MAR
Dec 375 000 225 000
Jan 65 000 26 000 39 000
Feb 190 000 76000 114 000
Mar 225 000 90 000
251 000 115 000 204 000


JAN FEB MAR
Total cash receipts 252 000 229 500 247 500
Total cash payments 295 000 164 000 263 000
Cash Generated (43 000) 65 500 (15 500)
Cash opening balance 40 000 (3 000) 62 500
Cash closing balance (3 000) 62 500 47 000




2.2
JAN FEB MAR
Cash receipts 252 000 229 500 247 500
Cash payments 295 000 164 000 263 000
Cash generated (43 000) 65 500 (15 500)
Cash: opening balance 40 000 20 000 20 000
Cash available (3 000) 85 500 4 500

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Studynotes101. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$8.76. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

83637 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$8.76
  • (0)
  Add to cart