FIRESAFE CASH BUDGET

FireSafe Cash Budget



Task 1

Prepare a cash budget for Firesafe Ltd for each of the twelve months to 31 March 2013.

FireSafe Cash Budget

For Apr-2012 through Mar-2013

 

 

Mar-12

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Jan-13

Feb

Mar

Total

Sales Units

 

1400

2000

2500

3500

3500

3500

3500

2000

1000

500

600

800

1500

24900

Beginning cash balance

 

£ - £ - £ - £ - £ 21,000 £ 51,000 £ 97,500 £ 195,000 £ 238,500 £ 239,000 £ 160,500 £ 151,000

 

Monthly Sales

£ 100.00 £ 140,000 £ 200,000 £ 250,000 £ 350,000 £ 350,000 £ 350,000 £ 350,000 £ 200,000 £ 100,000 £ 50,000 £ 60,000 £ 80,000 £ 150,000

 

Cash Sales

30%

£ 42,000 £ 60,000 £ 75,000 £ 105,000 £ 105,000 £ 105,000 £ 105,000 £ 60,000 £ 30,000 £ 15,000 £ 18,000 £ 24,000 £ 45,000

 

Credit Sales

70%

 

£ 98,000 £ 140,000 £ 175,000 £ 245,000 £ 245,000 £ 245,000 £ 245,000 £ 140,000 £ 70,000 £ 35,000 £ 42,000 £ 56,000

 

Total Available Cash

 

£ 42,000 £ 158,000 £ 215,000 £ 280,000 £ 350,000 £ 371,000 £ 401,000 £ 402,500 £ 365,000 £ 323,500 £ 292,000 £ 226,500 £ 252,000

$3,636,500

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production Units

 

1400

2500

2600

3500

3600

3400

3200

1700

1100

700

600

800

1200

$24,900 Raw Material

£ 30 £ 42,000 £ 75,000 £ 78,000 £ 105,000 £ 108,000 £ 102,000 £ 96,000 £ 51,000 £ 33,000 £ 21,000 £ 18,000 £ 24,000 £ 753,000 Labour

£ 45 £ 63,000 £ 112,500 £ 117,000 £ 157,500 £ 162,000 £ 153,000 £ 144,000 £ 76,500 £ 49,500 £ 31,500 £ 27,000 £ 36,000 £ 54,000 £ 1,120,500 Variable Production Overhead

£ 10 £ 14,000 £ 25,000 £ 26,000 £ 35,000 £ 36,000 £ 34,000 £ 32,000 £ 17,000 £ 11,000 £ 7,000 £ 6,000 £ 8,000 £ 12,000 £ 249,000 Variable Selling Costs

£ 5 £ 7,000 £ 12,500 £ 13,000 £ 17,500 £ 18,000 £ 17,000 £ 16,000 £ 8,500 £ 5,500 £ 3,500 £ 3,000 £ 4,000 £ 6,000 £ 124,500 Fixed Production Overhead

£ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 36,000 Adminstration expense

£ 3,500 £ 3,500 £ 3,500 £ 3,500 £ 3,500 £ 3,500 £ 5,000 £ 5,000 £ 5,000 £ 5,000 £ 5,000 £ 5,000 £ 5,000 £ 52,500 Fixed Selling Expense

£ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 1,500 £ 18,000 Capex

 

 

 

 

 

 

 

 

 

 

 

£ 65,000 £ - £ - £ 65,000 Total Disbursements

 

£ 92,000 £ 200,000 £ 239,000 £ 296,000 £ 329,000 £ 320,000 £ 303,500 £ 207,500 £ 126,500 £ 84,500 £ 131,500 £ 75,500 £ 105,500 £ 296,000

Cash Balance (Deficit)

 

-£ 50,000

-£ 42,000

-£ 24,000

-£ 16,000 £ 21,000 £ 51,000 £ 97,500 £ 195,000 £ 238,500 £ 239,000 £ 160,500 £ 151,000 £ 146,500 £ 3,340,500

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Overdraft

 

£ 50,000 £ 42,000 £ 24,000 £ 16,000 0 0 0 0 0 0 0 0 0 £ 132,000

Ending Cash Balance

 

£ - £ - £ - £ - £ 21,000

£ 51,000

£ 97,500

...