UKMM1043 Basic Economics, Accounting And Management

Tutorial 10 & 11

Q1
Workings:
a)
i)
Sales Total
Q1
Q2
Q3
Q4
ii)

24% x 2,850k = RM684k

20% x 2,850k = RM570k
24% x 2,850k = RM684k
32% x 2,850k = RM912k

Cash Sales
(75%)
RM513k
RM427.5k
RM513k
RM684k

Credit Sales
RM171,000
RM142,500
RM171,000
RM228,000

Purchases of = RM 1,140,000 x 100% = 40% of sales

food and drinks RM 2,850,000
Total
Purchases
Q1
Q2
Q3
Q4

40% x 684k = RM273.6k

40% x 570k = RM228k
40% x 684k = RM273.6k
40% x 912k = RM364.8k

Cash
Purchases
(20%)
RM54,720
RM45,600
RM54,720
RM72,960

Credit
Purchase
RM218,880
RM182,400
RM218,880
RM291,840

iii)

Repairs paid in Quarter 3 = 80% x RM120,000 = RM96,000

Repairs paid in other quarters = 20% x RM120,000
3
= RM8,000 per quarter

iv)

Wages = RM684,000 x 100% = 24% of sales

RM2,850,000
Quarter 1
24% x RM684,000 = RM164,160
Quarter 2
24% x RM570,000 = RM136,800
Quarter 3
24% x RM684,000 = RM164,160
Quarter 4
24% x RM912,000 = RM218,880

v) Rates
Quarter 1
Quarter 3

RM26,000 x = RM13,000
RM26,000 x = RM13,000

vi) Interest on Loan

Quarter 1
Quarter 2

RM88,000 x = RM44,000
RM88,000 x = RM44,000

Taman Restaurant
Cash Budget for the four quarters
Receipts
Cash sales
Receipts from debtors
Payments
Purchases of food & drinks
Salaries
Wages
Repairs
Rates
Advertising
Laundry
Interest on Loan
Sundry expenses
Capital expenditure
Surplus/(Deficit)
Opening balance
Closing balance

Quarter 1
RM

Quarter 2
RM

Quarter 3
RM

Quarter 4
RM

513,000
190,000
703,000

427,500
171,000
598,500

513,000
142,500
655,500

684,000
171,000
855,000

336,720
42,000
164,160
8,000
13,000
15,000
2,000
44,000
23,000
300,000
947,880
-244,880
-32,000
-276,880

264,480
42,000
136,800
8,000
15,000
2,000
23,000
491,280
107,220
-276,880
-169,660

237,120
42,000
164,160
96,000
13,000
15,000
2,000
44,000
23,000
636,280
19,220
- 169,660
-150,440

291,840
42,000
218,880
8,000
15,000
2,000
23,000
600,720
254,280
-150,440
103,840

b) Benefits obtained from preparing the quarterly cash budget:

Management is able to plan ahead and make appropriate arrangements for more fund at
the right time, when required, based on the cash budget. Correct timing for the utilization
of surpluses and repayment of loans can also be made.
Besides using profit as a measure of performance, cash generated can be valid measure of
performance.
The cash budget is a forecast summary of the cash account and can be integrated with the
preparation of budgeted profit and loss account and balance sheet.

Q2
Setia Trading

FORECAST CASH BUDGET FOR 4 MONTHS ENDING 31-March 2013

December
January
February
Cash bal b/d

7,625
19,818.6
7,016.2
RECEIPTS
Sales: Dec (20:70:10)
Sales: Jan (20:70:10)
Sales: Feb (20:70:10)
Sales: Mar (20:70:10)
A/c Receivables

PAYMENTS
loan deductions
wages
drawings
purchases fr. Nov
2012
purchases of supplies
fr. Dec 2012 onwards
additional purchases
(Feb 2013)
IRB
Rental
business rates
motor vehicle
Cash bal c/d

11,925.6

March
16,127

41,739.6
13,340

5,962.8
46,690
13,340

60,000
79,550.6

48,000
122,897.2

6,000
79,009

85,449

370
3,000
750
51,850

370
3,000
750

370
3,000
750

370
3,000
750

58,000

58,000

58,000

6,670
46,690
15,962

11,400
762

762
3,000

762

762

62,882
16,127

74,282
11,167

3,000
59,732
19,818.6

50,000
115,882
7,016.2

Q3.
Venice Sdn Bhd
Cash Budget for February and March 2013

Receipts:
Collections from customers
Cash sales
Payments:
Purchases
Selling and administrative expenses
Bonus to employees
Computer
Net receipts/(payments)
Bal b/d
Bal c/d

February
RM

March
RM

56,400
102,000
158,400

44,800
78,000
122,800

45,000
19,000
41,400

63,000
19,000
62,000
144,000
(21,200)
56,000
34,800

105,400
53,000
3,000
56,000

Q4.