Beruflich Dokumente
Kultur Dokumente
1. A budgeted Statement of Profit or Loss has been prepared for the Taman Restaurant for the coming
year as follows:
RM’000 RM’000
Sales 2,850
Cost of food and drink 1,140
Gross profit 1,710
Less: Expenses
Salaries 168
Wages 684
Depreciation 36
Repairs 120
Rates 26
Advertising 60
Laundry 8
Interest on Loan 88
Sundry Expenses 92 (1,282)
Net profit 428
Additional Information:
(1) The following pattern of sales is expected:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
24% 20% 24% 32%
(2) 75% of sales are on cash basis and the remaining to be received in the next quarter.
(3) The costs of food and drink vary directly with sales and a constant stock value of supplies
is kept. 20% of purchases are for cash and the rest are paid for during the next quarter.
(4) 80% of the repairs item is for a major redecoration to be paid for in the third quarter.
Payment for the balance 20% is to be spread equally over the remaining three quarters.
(5) Wages, which are variable with sales, are paid in the same quarter they are incurred.
(6) Rates and interest are paid half yearly in the first and third quarters.
(7) All other expense payments are made evenly over the year.
(8) Opening balances will be:
Trade debtors = RM190,000
Trade creditors = RM282,000
Bank overdraft = RM32,000
(9) Capital expenditure of RM300,000 on new equipment installed in the last month of the
previous year will now be paid for in the first quarter.
1
Accounting 201801
Required:
Prepare a cash budget for the four quarters of the year.
2. What are the benefits of budgeting?
3. Venice Sdn Bhd has budgeted sales revenue for 3 months ended 31 March 2017 as follows:
Past experience indicates that 60% of the credit sales will be collected in the month of sale
and the remaining 40% will be collected in the following month. Purchases of inventory are
all on credit and 50% is paid in the month of purchase and 50% in the month following
purchase. Budgeted inventory purchases are:
2017 RM
January 54,000
February 36,000
March 90,000
Required:
Prepare the cash budgets for the months of February and March 2017.
4. The sales forecast for Douglas & Co for July – December 2016 is:
Produce a production budget showing monthly opening and closing inventory figures if the
firm wishes to maintain an even level of producing 300 units each month, and a minimum
inventory level of 150 units in 31st December 2016.
2
Accounting 201801
Required:
Assuming a bank overdraft of RM80,750 on 31 May, prepare a cash budget for each of four
months of June, July, August and September.