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Summary - Finance

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If u want to pass your exam and achieve higher grades use these summaries , they’re useful and helpful I achieved distinction. And hopefully everyone who uses them will achieve same results. In this document you can find cashflow and how to work it out and some exercise.

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  • September 27, 2024
  • 2
  • 2023/2024
  • Summary

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JING CASHFLOW EXERCISE:

Income:
Total Sales:
 January to September: £3,000 each month
 October to December: £4,500 each month
 Credit sales: £1,000 from April to September, £1,500 from October to December
Rent from Accommodation:
 January to September: £450 each month
 October to December: £490 each month
Savings Injected into Business and Bank Loan:
 July: Jing injects £7,000 of her savings and borrows £8,000 from the bank, totalling
£15,000 entering the business account.
Expenses:
Purchases:
 Consistently £300 each month throughout the year.
Delivery Vehicle Cost:
 In July: The vehicle is purchased for £15,000.
Mortgage on Shop:
 Consistently £560 each month.
Business Rates:
 Starts at £210 per month from March, payable in 10 instalments.
Owner’s Drawings:
 Consistently £1,500 each month.
Advertising and Insurance:
 Advertising: £25 each month.
 Insurance: £110 each month.
Wages:
 Starts at £900 per month and increases to £950 from May onwards.
Loan Repayment:
 Begins at £200 per month in the month following the loan receipt.

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