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    The document provides the cash budget for Watson Ltd for July to September. It shows expected cash receipts from sales, cash payments for materials, wages, overheads, and other expenses. It then calculates the monthly and cumulative net cash inflows/outflows and closing cash balances. Key figures include a July net cash inflow of $3,370 and a September closing cash balance of $7,185.

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    The document provides the cash budget for Watson Ltd for July to September. It shows expected cash receipts from sales, cash payments for materials, wages, overheads, and other expenses. It then calculates the monthly and cumulative net cash inflows/outflows and closing cash balances. Key figures include a July net cash inflow of $3,370 and a September closing cash balance of $7,185.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    11 views11 pages

    Carley N

    Uploaded by

    ali
    The document provides the cash budget for Watson Ltd for July to September. It shows expected cash receipts from sales, cash payments for materials, wages, overheads, and other expenses. It then calculates the monthly and cumulative net cash inflows/outflows and closing cash balances. Key figures include a July net cash inflow of $3,370 and a September closing cash balance of $7,185.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 11

    Watson Ltd cash budget for July to September

    July August September


    Sales receipts:
    10% in Cash $ 1,360 $ 1,700 $ 1,680
    90% in one month $ 11,250 $ 12,240 $ 15,300
    total $ 12,610 $ 13,940 $ 16,980

    Payments
    Material purchases $ 3,450 $ 3,780 $ 2,890
    Direct wages $ 1,300 $ 1,300 $ 1,300
    Overheads $ 2,900 $ 2,900 $ 2,900
    Selling, Distr. & Admin $ 1,590 $ 1,590 $ 1,590
    Vehicle $ 9,870
    Total $ 9,240 $ 19,440 $ 8,680

    Net Cash Inflow/(Outflow) $ 3,370 $ (5,500) $ 8,300


    Op. Cash Balance $ 1,235 $ 4,495 $ (1,115)
    Closing Cash Balance $ 4,605 $ (1,005) $ 7,185

    Depreciation amount of 300 has been excluded from the overhead payment figures because it is non cash item
    use it is non cash item
    Ratio analysis for Tailspin Industries
    2018 2019
    Gross Margin 35/70*100=50% 48/60*100=60%
    Profit Margin 21/70*100=30% 26.67/80*100=33.33%
    Total Exp 35-21 =14 48-26.67=21.33
    ROCE 21.2/84*100=25.24% 26.97/133.35*100=20.22%
    Current Ratio 12/5=2.4:1 16/2+6=2.1:1
    Liquid Ratio 12-5/5=1.4:1 16-11/8=0.63:1
    Debtors Turnover Ratio 4/50*365=30 days 5/55*365=34days
    Creditors Turnover Ratio 5/30*365=61 days 6/32*365=69 days
    Inventory Turnover 35/4.75=7.4 times 32/8=4 times
    Current Assets 5+4+3=12 11+5=16
    COS 4.5+50-5=49.5 9+16-11=14

    All above Figures are in $ 000


    Income Profit & Loss Statement or the year Ended Feb 2019

    Sales $ 19,740
    Cos
    Op.Stock $ 2,970
    Purchases $ 11,280
    $ 14,250
    Closing Stock $ (2,380) $ 11,870
    Gross Profit $ 7,870

    Add Income
    Disc. Received $ 360
    Decrease in provision for doubtful debts $ 30 $ 390
    $ 8,260
    Less expenses
    Repairs to motor vehicle $ 450
    Rent ($2580 + $350) $ 2,930
    Salaries ($1020 – $240) $ 780
    Discounts allowed $ 810
    Insurance $ 690
    Depreciation ($170 + $350) $ 520 $ 6,180
    Profit for the year $ 2,080
    Balance Sheet as at 28 February 2019
    Cost Accumlated Net Book Value
    depreciation
    Non– current assets

    Machinery $ 1,440 $ 750 $ 690


    Motor vehicle $ 2,400 $ 1,170 $ 1,230
    $ 3,840 $ 1,920 $ 1,920

    Current assets
    Closing Stock $ 2,380
    Debtors $ 4,920
    Provision for doubtful debts $ 240 $ 4,680

    Other receivables $ 240


    Cash at bank $ 210
    Cash in hand $ 1,140 $ 8,650

    Total Assets $ 10,570

    CAPITAL AND LIABILITIES

    Balance at 1 March 2018 $ 8,500


    Profit $ 2,080 $ 10,580
    Less: Drawings $ 2,850
    $ 7,730

    Current liabilities

    Trade payables $ 2,490


    Other payables $ 350 $ 2,840

    Total capital and liabilities $ 10,570


    P&L for the year ended 31 July 2018
    Sales $ 100,000
    Cos
    Op.Stock $ 24,930
    Purchases $ 71,600
    $ 96,530
    Closing Stock $ 15,780 $ 80,750
    Gross Profit $ 19,250

    Less expenses
    Depreciation – Office equipment $ 900
    Motor vehicle $ 970
    Salaries $ 8,415
    Rent ($1400 + $200) $ 1,600 $ 11,885
    Profit for the year $ 7,365
    Add: interest on drawings – Sunaina $ 200
    – Fatima $ 310 $ 510
    $ 7,875
    Less: interest on capital – Sunaina (10% x $20 000) $ 2,000
    – Fatima (10% x $19 000) $ 1,900 $ 3,900
    $ 3,975
    Profits to be shared – Sunaina 1/5 $ 795
    – Fatima 4/5 $ 3,180
    Balance Sheet as at 31 July 2018
    Cost Accumlated Net Book
    depreciation Value
    Non– current assets

    Office equipment $ 6,000 $ 2,580 $ 3,420


    Motor vehicle $ 9,700 $ 4,920 $ 4,780
    $ 15,700 $ 7,500 $ 8,200

    Current assets
    Closing Stock $ 15,780
    Debtors $ 21,000

    Cash at bank $ 600


    Cash in hand $ 155 $ 37,535

    Total Assets $ 45,735

    CAPITAL AND LIABILITIES


    Sunaina Fatima
    Capital $ 20,000 $ 19,000 $ 39,000
    Balance at 1 Aug 2017 $ 1,374 $ 1,211
    Int. on Capital $ 2,000 $ 1,900
    Profit $ 795 $ 3,180 $ 10,460
    Less: Drawings $ 4,060 $ 6,000 $ 10,570
    Int. on Drawings $ 200 $ 310
    $ (110)
    Current liabilities

    Trade payables $ 6,645


    Other payables $ 200 $ 6,845

    Total capital and liabilities $ 45,735


    Trading account for the year ended 31 December 2018

    Sales $ 14,300
    Less: Cost of goods sold
    Op. Stock $ 2,000
    Purchases $ 6,750
    $ 8,750
    Closing Stock $ 2,362 $ 6,388
    Gross Profit $ 7,912
    Income and expenditure account for the year ended 31 December 2018

    Income
    Gross profit from café $ 7,912
    Members' annual subscriptions $ 15,900
    Donations $ 3,650
    Visitors entrance fees $ 8,650
    $ 36,112

    Expenditure
    Rates and insurance $ 2,850
    Staff wages $ 22,000
    Stationery, phone, postage $ 350
    Veterinary bills $ 5,000
    Animal food $ 2,550
    Depreciation $ 1,470 $ 34,220

    Surplus $ 1,892
    Statement of financial position for the year ended 31 December 2018

    Non– current assets Cost Accumlated Net Book


    depreciation Value

    Sanctuary premises $ 18,800 $ 18,800


    Fixtures & Equimpent $ 21,000 $ 1,470 $ 19,530
    $ 39,800 $ 1,470 $ 38,330
    Current assets
    Closing Stock $ 2,362
    Subscriptions owing $ 500
    Cash at bank $ 2,425
    Cash in hand $ 5,287

    Total Assets $ 43,617

    Accumulated fund and liabilities:

    Accumulated fund
    Balance at 1 January 2018 $ 40,875
    Surplus of income over expenditure $ 1,892
    $ 42,767
    Current liabilities

    Trade payables $ 850


    $ 850

    Total capital and liabilities $ 43,617

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