Accounting and Finance Management Accounting Computer-Based Exemplars Int2/ Higher

Accounting and Finance Management Accounting Computer-Based Exemplars Int2/ Higher 3842

Autumn 1998 HIGHER STILL Accounting and Finance Management Accounting Computer-Based Exemplars Cash Budgets Int2/Higher Support Materials *+,-./

This publication may be reproduced in whole or in part for educational purposes provided that no profit is derived from the reproduction and that, if reproduced in part, the source is acknowledged. First published 1998 Higher Still Development Unit PO Box 12754 Ladywell House Ladywell Road Edinburgh EH12 7YH Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

INTRODUCTION Teacher/Lecturer Notes The aim of this pack is to provide exemplar spreadsheet questions for student use. The pack, which targets both Intermediate 2 and Higher Levels, will permit students to gain further experience in the use of spreadsheets. The structured questions in the pack are designed to allow students to progress from Intermediate 2 to Higher where appropriate. The first section of the pack contains the student questions split into separate tasks with exemplar spreadsheet templates and formulae worksheets. The final section contains comprehensive solutions for each question including spreadsheet and formulae worksheets. It is suggested that, where software facilities permit, students are encouraged to print embedded formulae in preference to the use of formulae worksheets. This pack will be provided on CD ROM to enable users to customise questions to suit their individual client group requirements. Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

ACCOUNTING AND FINANCE MANAGEMENT ACCOUNTING INTERMEDIATE 2/HIGHER COMPUTER-BASED EXEMPLARS CASH BUDGETS Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

Accounting and Finance Contents Management Accounting Cash Budgets QUESTIONS EXERCISE LEVEL PAGE 1 Intermediate 2 1-5 2 Intermediate 2 6-10 3 Intermediate 2 11-15 4 Intermediate 2/Higher 16-20 5 Intermediate 2/Higher 21-25 6 Intermediate 2/Higher 26-30 7 Higher 31-35 8 Higher 36-40 9 Higher 41-46 SOLUTIONS EXERCISE LEVEL PAGE 1 Intermediate 2 49-54 2 Intermediate 2 55-60 3 Intermediate 2 61-66 4 Intermediate 2/Higher 67-72 5 Intermediate 2/Higher 73-78 6 Intermediate 2/Higher 79-84 7 Higher 85-90 8 Higher 91-96 9 Higher 97-102 Accounting and Finance - Management Accounting - Overhead Apportionment Solutions - Int 2/Higher

Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

Accounting and Finance: Management Accounting Int2: Cash Budgets EXERCISE 1 - TASK 1 John Adams uses a spreadsheet to prepare his Cash Budget for the 3-month period April to June, based upon the following data. Month Sales Purchases Wages Rent Overheads January 30,000 20,000 5,500 3,100 200 February 28,000 24,000 5,800 3,100 200 March 32,000 25,000 6,000 3,100 300 April 40,000 28,000 6,200 3,500 300 May 42,000 31,000 6,500 3,500 400 June 38,000 25,000 7,000 3,500 400 Additional information: (a) The cash balance at 1 April is 10,000. (b) (c) (d) (e) Sales are 50% cash and 50% credit. Payment for credit sales is received by the end of the month after the month of sale. Purchases are all on credit. Credit terms for purchases allow payment within 3 months and John Adams takes full advantage of these terms. John Adams receives a dividend for 2,000 in May. Wages, Rent and Overhead expenses are paid for in the month in which they are incurred. (f) A van is sold in June for 2,000. (g) A loan of 2,000 from a family friend is received in May. INSTRUCTIONS 1 Load spreadsheet CBQ01T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ01T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 1 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 1

Accounting and Finance: Management Accounting Int2: Cash Budgets EXERCISE 1 - TASK 2 John Adams is pleased with his cash position and decides to expand. A forecast Cash Budget is prepared for the 3 month period July to September to check that the expansion does not create cash difficulties. The following data is estimated. Month Sales Purchases Wages Rent Overheads April 40,000 28,000 6,200 3,500 300 May 42,000 31,000 6,500 3,500 400 June 38,000 25,000 7,000 3,500 400 July 36,000 26,000 7,100 3,500 500 August 36,000 28,000 7,300 3,500 500 September 34,000 30,000 7,500 3,500 600 Additional information: (a) (b) (c) Sales are 50% cash and 50% credit. Payment for credit sales is received by the end of the month after the month of sale. Purchases are all on credit. Credit terms for purchases allow payment within 3 months and John Adams takes full advantage of these terms. Wages, Rent and Overhead expenses are paid for in the month they are incurred. (d) Two new vans are purchased in August for 40,000. (e) (f) A loan of 2,000 from a family friend is repaid in September. Additional premises are rented from July onwards at 2,000 per month. INSTRUCTIONS 1 Load the amended spreadsheet CBQ01T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ01T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 1 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 2

Accounting and Finance: Management Accounting Int2: Cash Budgets Q1 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name JOHN ADAMS Cash Budget for the 3-months April May June Opening balance d f f Add: CASH INFLOWS Sales f f f Dividend Van Loan Total Cash Inflows f f f Less: CASH OUTFLOWS Purchases d d d Wages d d d Rent d d d Overheads d d d Total Cash Outflows f f f Closing balance f f f d d d CBQ01T1.XLS 3

Accounting and Finance: Management Accounting Int2: Cash Budgets Formulae Worksheet (Question 1 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (May) C5... Sales (June) D7... Total Cash Inflows (April) B13... Total Cash Outflows (May) C21... Closing balance (June) D22... Budgets: Cash Budgets 4

Accounting and Finance: Management Accounting Int2: Cash Budgets Formulae Worksheet (Question 1 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (July) B7... Sales (August) C7... Sales (September) D7... Budgets: Cash Budgets 5

Accounting and Finance: Management Accounting Int2: Cash Budgets EXERCISE 2 - TASK 1 Laura Burns, who runs a laundry, uses a spreadsheet to prepare her Cash Budget for the 3-month period April to June, based upon the following data. Month Sales Materials Wages Variable Fixed Overheads Overheads January 55,000 27,000 11,000 5,500 11,000 February 66,000 33,000 12,000 6,600 11,000 March 77,000 38,000 13,000 7,700 11,000 April 88,000 44,000 14,000 8,800 11,000 May 110,000 50,000 15,000 10,000 11,000 June 66,000 33,000 16,000 6,600 11,000 Additional information: (a) The cash balance at 1 April is 11,000. (b) (c) (d) (e) (f) (g) Sales are 25% cash and 75% credit. Payment for credit sales is received by the end of the month after the month of sale. Materials purchases are all on credit and are paid for 2 months after they have been received. The first payment of 6,500 on a new dryer is due in June. Wages and Overheads are paid for in the month in which they are incurred. Laura Burns is due to repay a loan of 12,000 in May. Investment income of 500 is received monthly. INSTRUCTIONS 1 Load spreadsheet CBQ02T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ02T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 2 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 6

Accounting and Finance: Management Accounting Int2: Cash Budgets EXERCISE 2 - TASK 2 Laura Burns discovers a number of errors in the Cash Budget and the following adjustments have to be made. The monthly data should read as follows: Month Sales Materials Wages Variable Fixed Overheads Overheads January 55,000 29,000 11,000 5,500 12,000 February 66,000 31,000 13,000 6,600 12,000 March 77,000 36,000 15,000 7,700 12,000 April 88,000 38,000 17,000 8,800 12,000 May 110,000 40,000 19,000 9,900 12,000 June 66,000 43,000 21,000 10,000 12,000 Additional information: (a) (b) Sales are 30% cash and 70% credit. A dividend of 400 received in May was omitted. (c) The loan repayment in May was 20,000. INSTRUCTIONS 1 Load the amended spreadsheet CBQ02T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ02T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 2 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 7

Accounting and Finance: Management Accounting Int 2: Cash Budgets Q2 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name LAURA BURNS Cash Budget for the 3-months April May June Opening balance d f f Add: CASH INFLOWS Sales f f f Investment income d d d Total Cash Inflows f f f Less: CASH OUTFLOWS Materials d d d Wages d d d Variable overheads d d d Fixed overheads d d d Loan d Dryer d Total Cash Outflows f f f Closing balance f f f CBQ02T1.XLS 8

Accounting and Finance: Management Accounting Int2: Cash Budgets Formulae Worksheet (Question 2 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (June) D5... Sales (April) B7... Total Cash Inflows (May) C13... Total Cash Outflows (June) D21... Closing balance (April) B22... Budgets: Cash Budgets 9

Accounting and Finance: Management Accounting Int2: Cash Budgets Formulae Worksheet (Question 2 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (April) B7... Sales (May) C7... Sales (June) D7... Budgets: Cash Budgets 10

Accounting and Finance: Management Accounting Int2: Cash Budgets EXERCISE 3 - TASK 1 JB Campers plc uses a spreadsheet to prepare the Cash Budget for the quarter July to September, based upon the following data. Month Sales Purchases Wages Selling Site Overheads Overheads April 88,500 37,000 8,000 3,250 5,680 May 84,000 40,000 8,400 4,100 5,920 June 93,000 39,060 8,800 3,710 5,440 July 72,000 39,900 6,000 3,210 5,880 August 82,500 35,000 9,600 3,600 6,000 September 98,600 36,400 8,000 3,450 5,680 Additional information: (a) The cash balance at 1 July is 110,000. (b) (c) (d) (e) (f) (g) Sales are 20% cash and 80% credit. Payment for credit sales is received by the end of the month after the month of sale. Purchases are all on credit and are paid for 3 months after they have been received. A plot of land was purchased in March and 38,000 is payable in July. Wages are paid one month in arrear and all overheads are settled in the month in which they are incurred. JB Campers plc is due to repay a loan of 5,000 in August. A dividend of 10,000 is expected in August. INSTRUCTIONS 1 Load spreadsheet CBQ03T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ03T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 3 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 11

Accounting and Finance: Management Accounting Int2: Cash Budgets EXERCISE 3 - TASK 2 JB Campers plc is unhappy about the size of the cash balance and the following adjustments have to be made. (a) A new site is to be purchased in July - value 100,000 and new machinery is to be purchased in September - value 60,000. (b) Alter the sales ratios to 30% cash and 70% credit. (c) Wages to change to: April 6,000; May 6,400; June 6,800; July 6,000; August 5,000 and September 5,000. (d) The dividend in August is expected to be 11,000. INSTRUCTIONS 1 Load the amended spreadsheet CBQ03T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ03T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 3 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 12

Accounting and Finance: Management Accounting Int2: Cash Budgets Q3 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A B C D Student Name JB CAMPERS plc Cash Budget for the 3-months July August September Opening balance d f f Add: CASH INFLOWS Sales f f f Dividend d Total Cash Inflows f f f Less: CASH OUTFLOWS Purchases d d d Land d Wages d d d Selling overheads d d d Site overheads d d d Loan d Total Cash Outflows f f f Closing balance f f f CBQ03T1.XLS 13

Accounting and Finance: Management Accounting Int2: Cash Budgets Formulae Worksheet (Question 3 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (September) D5... Sales (July) B7... Total Cash Inflows (August) C13... Total Cash Outflows (September) D22... Closing balance (July) B23... Budgets: Cash Budgets 14

Accounting and Finance: Management Accounting Int2: Cash Budgets Formulae Worksheet (Question 3 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (July) B7... Sales (August) C7... Sales (September) D7... Land (July) B16... Budgets: Cash Budgets 15

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets EXERCISE 4 - TASK 1 Ferguson Co Ltd uses a spreadsheet to prepare its Cash Budget for the quarter April to June, based upon the following data. Month Sales Materials Wages Distribution General Expenses Expenses January 60,000 15,200 15,000 4,100 5,000 February 60,000 16,000 16,000 4,100 5,100 March 61,000 16,400 16,000 4,200 5,200 April 61,000 16,400 16,000 4,300 5,200 May 62,000 17,100 18,000 4,400 5,300 June 62,000 17,200 18,000 4,400 5,300 Additional information: (a) The cash balance at 1 April is 30,000. (b) (c) (d) (e) (f) (g) Sales are 50% cash and 50% credit. Payment for credit sales is received by the end of the month after the month of sale. Cash sales customers are allowed a 10% discount. Materials are all on credit and are paid for 3 months after they have been received. General expenses include 100 per month depreciation. Wages, distribution expenses and general expenses are settled in the month in which they are incurred. Ferguson Co Ltd pay 3,000 for equipment in May and also negotiate a bank loan of 10,000 in June. INSTRUCTIONS 1 Load spreadsheet CBQ04T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ04T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 4 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 16

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets EXERCISE 4 - TASK 2 Ferguson Co Ltd is unhappy about the size of the cash balance and the following adjustments have to be made during the quarter July to September. Month Sales Materials Wages Distribution General Expenses Expenses July 67,000 17,400 18,000 4,500 5,400 August 65,000 17,600 18,000 4,500 5,400 September 67,000 17,800 20,000 4,600 5,500 Additional information: (a) New equipment is to be purchased in July - value 70,000. (b) Cash discount is to be increased to 20%. (c) (d) An advertising campaign will run from September to December at 1,000 per month. Depreciation is to be increased to 500 per month from July onwards. INSTRUCTIONS 1 Load the amended spreadsheet CBQ04T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ04T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 4 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 17

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Q4 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name FERGUSON CO LTD Cash Budget for the 3-months April May June Opening balance d f f Add: CASH INFLOWS Sales f f f Bank loan d Total Cash Inflows f f f Less: CASH OUTFLOWS Materials d d d Wages d d d Distribution expenses d d d General expenses f f f Equipment d Total Cash Outflows f f f Closing balance f f f CBQ04T1.XLS 18

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Formulae Worksheet (Question 4 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (June) D5... Sales (April) B7... Total Cash Inflows (May) C13... General expenses (June) D18... Total Cash Outflows (April) B21... Closing balance (May) C23... Budgets: Cash Budgets 19

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Formulae Worksheet (Question 4 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (July) B7... Sales (August) C7... Sales (September) D7... General expenses (September) D18... Budgets: Cash Budgets 20

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets EXERCISE 5 - TASK 1 Greigson Brothers uses a spreadsheet to prepare its Cash Budget for the quarter September to November, based upon the following data. Production Budget in units: Jun Jul Aug Sep Oct Nov Opening Balance 250 750 550 550 450 240 Add: Production 2,500 2,800 3,000 3,400 3,800 4,100 2,750 3,550 3,550 3,950 4,240 4,340 Less: Sales 2,000 3,000 3,000 3,500 4,000 4,000 Closing Balance 750 550 550 450 240 340 Additional information: (a) The cash balance at 1 September is 3,000. (b) (c) (d) (e) (f) Sales ( 50 per unit) are 80% cash and 20% credit. Payment for credit sales is received by the end of the month after the month of sale. Cash sales customers are allowed a 10% discount. Materials ( 20 per unit) are all on credit and are paid for 3 months after they have been used in production. Labour ( 10 per unit) and variable costs ( 3 per unit) are paid for in the month in which they are incurred. Fixed costs are 2,600 per month and include 1,000 per month depreciation. (g) A van is purchased in September costing 18,000. (h) A short-term loan of 5,000 is repaid in full in November. INSTRUCTIONS 1 Load spreadsheet CBQ05T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ05T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 5 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 21

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets EXERCISE 5 - TASK 2 Greigson Brothers is pleased with the Cash Budget results and uses a spreadsheet to prepare its Cash Budget for the quarter December to February, based upon the following data. Production Budget in units: Sep Oct Nov Dec Jan Feb Opening Balance 550 450 240 340 40 40 Add: Production 3,400 3,800 4,100 3,900 3,500 3,000 3,950 4,240 4,340 4,240 3,540 3.040 Less: Sales 3,500 4,000 4,000 4,200 3,500 2,800 Closing Balance 450 240 340 40 40 240 Additional information: (a) (b) (c) (d) (e) Sales ( 50 per unit) are 70% cash and 30% credit. Payment for credit sales is received by the end of the month after the month of sale. Cash sales customers are allowed a 20% discount. Materials ( 25 per unit) are all on credit and are paid for 3 months after they have been used in production. Labour ( 15 per unit) and variable costs ( 4 per unit) are paid for in the month in which they are incurred. Fixed costs are 3,500 per month and include 2,000 per month depreciation. (f) A van is purchased in January costing 20,000. (g) New premises are purchased - value 190,000 is paid in full in December. INSTRUCTIONS 1 Load spreadsheet CBQ05T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ05T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 5 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 22

Accounting and Finance: Management Accounting Int 2/Higher: Cash Budgets Q5 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name GREIGSON BROTHERS Cash Budget for the 3-months September October November Opening balance d f f Add: CASH INFLOWS Sales f f f Total Cash Inflows f f f Less: CASH OUTFLOWS Raw materials f f f Labour f f f Variable overheads f f f Fixed overheads f f f Van Loan Total Cash Outflows f f f Closing balance f f f d d CBQ05T1.XLS 23

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Formulae Worksheet (Question 5 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (November) D5... Sales (September) B7... Total Cash Inflows (October) C13... Raw materials (November) D16... Labour (September) B17... Variable overheads (October) C18... Fixed overheads (November) D19... Total Cash Outflows (September) B23... Closing balance (October) C24... Budgets: Cash Budgets 24

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Formulae Worksheet (Question 5 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (December) B7... Sales (January) C7... Sales (February) D7... Direct materials (December) B16... Labour (January) C17... Variable overheads (February) D18... Fixed overheads (December) B19... Budgets: Cash Budgets 25

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets EXERCISE 6 - TASK 1 Harrison plc uses a spreadsheet to prepare its Cash Budget for the quarter July to September, based upon the following data. Apr May Jun Jul Aug Sep Production (units) 1,200 1,350 1,550 1,450 1,650 1,500 Credit sales (units) 2,600 3,000 4,000 4,300 4,400 3,800 Cash sales (units) 400 400 500 600 700 500 Additional information: (a) The cash balance at 1 September is 3,000. (b) (c) (d) (e) (f) Units are sold at 20 each. Payment for credit sales is received by the end of the month after the month of sale and cash sales customers are allowed a 10% discount. Materials ( 3 per unit) are all on credit and are paid for 3 months after they have been used in production. Labour ( 8 per unit) and production expenses ( 4 per unit) are paid for in the month in which they are incurred. Fixed costs are 3,500 per month and include 1,500 per month depreciation. (g) A new machine is purchased in August costing 50,000. (h) (i) (j) A bank loan of 12,000 is raised in July. Investment income of 800 is received monthly. Electricity charges of 400 are paid quarterly, the first quarter beginning on 1 January. INSTRUCTIONS 1 Load spreadsheet CBQ06T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ06T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 6 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 26

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets EXERCISE 6 - TASK 2 Harrison plc decide to prepare a forecast for the period October to December to see if it is possible to expand to new premises. In order to guarantee sufficient cash to achieve this, the following data applies. Jul Aug Sep Oct Nov Dec Production (units) 1,450 1,650 1,500 1,400 1,400 1,500 Credit sales (units) 4,300 4,400 3,800 3,000 3,200 3,400 Cash sales (units) 600 700 500 600 600 600 Additional information: (a) (b) (c) (d) (e) (f) Units are sold at 20 each until September and at 25 each from October onwards. Payment for credit sales is received by the end of the month after the month of sale and cash sales customers are allowed a 10% discount rising to 20% from October onwards. Materials ( 3 per unit) are all on credit and are paid for 3 months after they have been used in production. Labour ( 8 per unit rising to 10 per unit from October onwards) are paid for in the month in which they are incurred. Production expenses ( 4 per unit) are paid for in the month in which they are incurred. Fixed costs are 3,500 per month and include 1,500 per month depreciation. From October onwards fixed costs rise to 5,000 per month and include 2,000 per month depreciation (g) New premises are purchased in October costing 250,000. (h) (i) Investment income of 800 is received monthly. Electricity charges of 400 are paid quarterly, the first quarter beginning on 1 January. INSTRUCTIONS 1 Load spreadsheet CBQ06T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ06T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 6 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 27

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Q6 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name HARRISON plc Cash Budget for the 3-months July August September Opening balance d f f Add: CASH INFLOWS Sales f f f Bank loan d Investment income d d d Total Cash Inflows f f f Less: CASH OUTFLOWS Raw materials f f f Labour f f f Production expenses f f f Fixed costs f f f Machine Electricity Total Cash Outflows f f f Closing balance f f f d d CBQ06T1.XLS 28

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Formulae Worksheet (Question 6 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (September) D5... Sales (July) B7... Total Cash Inflows (August) C14... Raw materials (September) D16... Labour (July) B17... Production expenses (August) C18... Fixed costs (September) D19... Total Cash Outflows (July) B23... Closing balance (August) C24... Budgets: Cash Budgets 29

Accounting and Finance: Management Accounting Int2/Higher: Cash Budgets Formulae Worksheet (Question 6 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (October) B7... Sales (November) C7... Sales (December) D7... Raw materials (October) B16... Labour (November) C17... Production expenses (December) D18... Fixed costs (October) B19... Budgets: Cash Budgets 30

Accounting and Finance: Management Accounting Higher: Cash Budgets EXERCISE 7 - TASK 1 Klienguard plc uses a spreadsheet to prepare its Production Budget and its Cash Budget for the quarter October to December, based upon the following data. Jul Aug Sep Oct Nov Dec Jan Production (units) 600 550 450 650 700 750 750 Sales (units) 400 450 500 600 550 700 800 Additional information: (a) The opening stock on 1 July is 50 units. (b) The cash balance at 1 October is 900. (c) (d) (e) (f) (g) (h) (i) Units are sold at 10 each. Sales are 50% cash and 50% credit. Payment for credit sales is received 2 months after the month of sale. Cash sales customers are allowed a 10% discount. Raw materials costing 4 per unit are all purchased on credit. One quarter of the cost is paid upon purchase with the balance being paid 2 months later. Labour ( 1 per unit) and variable overheads ( 2 per unit) are paid for in the month in which they are incurred. Fixed overheads are 100 per month and include 30 per month depreciation. A bank loan of 2,000 is raised in October. (j) A second-hand delivery van is purchased for 10,200. (k) Insurance of 200 is paid quarterly, the first quarter beginning on 1 January. INSTRUCTIONS 1 Load spreadsheet CBQ07T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ07T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 7 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 31

Accounting and Finance: Management Accounting Higher: Cash Budgets EXERCISE 7 - TASK 2 Klienguard plc decides to make changes to its budgets with the intention of reducing the cash deficit. The Production Budget and the Cash Budget for the quarter January to March have to be prepared, based upon the following data. Oct Nov Dec Jan Feb Mar Production (units) 650 700 750 750 750 800 Sales (units) 600 550 700 800 800 820 Additional information: (a) (b) (c) (d) (e) (f) (g) (h) Units are sold at 10 each, rising to 12 each from January. Sales are 50% cash and 50% credit. Payment for credit sales is received 2 months after the month of sale. Cash sales customers are allowed a 10% discount, rising to 20% from January. Raw materials costing 4 per unit, rising to 6 per unit from January, are all purchased on credit. One quarter of the cost is paid upon purchase with the balance being paid 2 months later. Labour ( 1 per unit) and variable overheads ( 2 per unit, rising to 3 per unit from January) are paid for in the month in which they are incurred. Fixed overheads are 100 per month and include 30 per month depreciation. From January the fixed costs will be 150 per month including 30 per month depreciation. A dividend of 3,000 is received in February. Insurance of 200 is paid quarterly, the first quarter beginning on 1 January. INSTRUCTIONS 1 Load spreadsheet CBQ07T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ07T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 7 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 32

Accounting and Finance: Management Accounting Higher: Cash Budgets Q7 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D Student Name KLIENGUARD plc Production Budget for the 3-months October November December Units Units Units Opening stock f f f Add: Production d d d f f f Less: Sales d d d Closing stock f f f KLIENGUARD plc Cash Budget for the 3-months October November December Opening balance d f f Add: CASH INFLOWS Sales f f f Bank loan d Total Cash Inflows f f f Less: CASH OUTFLOWS Raw materials f f f Direct labour d d d Variable overheads f f f Fixed overheads f f f Insurance Delivery van Total Cash Outflows f f f Closing balance f f f d d CBQ07T1.XLS 33

Accounting and Finance: Management Accounting Higher: Cash Budgets Formulae Worksheet (Question 7 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening stock (October) B5... Opening stock (November) C5... Closing stock (December) D9... Sales (October) B16... Total Cash Inflows (November) C23... Raw materials (December) D25... Variable overheads (October) B27... Fixed overheads (November) C28... Total Cash Outflows (December) D32... Closing balance (October) B33... Budgets: Cash Budgets 34

Accounting and Finance: Management Accounting Higher: Cash Budgets Formulae Worksheet (Question 7 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (January) B16... Sales (February) C16... Sales (March) D16... Raw materials (January) B25... Raw materials (February) C25... Raw materials (March) D25... Budgets: Cash Budgets 35

Accounting and Finance: Management Accounting Higher: Cash Budgets EXERCISE 8 - TASK 1 Linpro plc uses a spreadsheet to prepare its Production Budget and its Cash Budget for the quarter October to December, based upon the following data. Jun Jul Aug Sep Oct Nov Dec Production (units) 2,000 3,000 2,500 4,000 1,550 3,500 Closing stock (units) 300 500 300 800 400 450 950 Additional information: (a) The cash balance at 1 October is 20,000. (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Units are sold at 30 each. Sales are 20% cash and 80% credit. Payment for credit sales is received 2 months after the month of sale. Cash sales customers are allowed a 10% discount. Raw materials costing 5 per unit are all purchased on credit and are paid for in the month after their use in production. Labour ( 15 per unit) and variable overheads ( 2 per unit) are paid for in the month in which they are incurred. A labour bonus of 1 per unit is paid when production rises above 2,500 units. Fixed overheads are 2,400 per month and include 600 per month depreciation. A bank loan of 50,000 is raised in January, being repaid at 3,000 per half-year beginning in June. New equipment is bought costing 30,000 and is paid for in 3 equal monthly instalments starting in October. Advertising of 5,000 per quarter is paid, the first quarter beginning on 1 March. Investment income of 2,000 is received every month. INSTRUCTIONS 1 Load spreadsheet CBQ08T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ08T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 8 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 36

Accounting and Finance: Management Accounting Higher: Cash Budgets EXERCISE 8 - TASK 2 Linpro plc decides to make changes to its budgets. The Production Budget and the Cash Budget for the quarter January to March have to be prepared, based upon the following data. Oct Nov Dec Jan Feb Mar Production (units) 4,000 1,550 3,500 2,800 3,000 2,900 Closing stock (units) 400 450 950 800 800 750 Additional information: (a) (b) (c) (d) (e) (f) Units are sold at 30 each. Sales are 80% on credit, rising to 90% from January. Payment for credit sales is received 2 months after the month of sale. Cash sales customers are allowed a 10% discount, rising to 20% from January. Raw materials costing 5 per unit, rising to 6 per unit from January, are all purchased on credit and are paid for in the month after their use in production. Labour ( 15 per unit) and variable overheads ( 2 per unit) are paid for in the month in which they are incurred. A labour bonus of 1 per unit is paid when production rises above 2,500 units. From January the bonus is 2 per unit on production over 2,000 units. (g) Fixed overheads are 2,400 per month and include 600 per month depreciation. The monthly cost will increase by 1,000 from January with depreciation unchanged. (h) (i) (k) (l) The bank loan raised in January, continues to be repaid at 3,000 per half-year beginning in June. New equipment is bought in January costing 100,000 and is paid for immediately. Advertising of 5,000 per quarter is paid, the first quarter beginning on 1 March. Investment income of 2,000 is received every month. INSTRUCTIONS 1 Load spreadsheet CBQ08T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ08T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 8 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 37

Accounting and Finance: Management Accounting Higher: Cash Budgets Q8 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D Student Name LINPRO plc Production Budget for the 3-months October November December Units Units Units Opening stock d f f Add: Production d d d f f f Less: Sales f f f Closing stock d d d LINPRO plc Cash Budget for the 3-months October November December Opening balance d f f Add: CASH INFLOWS Sales f f f Investment income d d d Total Cash Inflows f f f Less: CASH OUTFLOWS Raw materials f f f Direct labour f f f Variable overheads f f f Fixed overheads f f f Equipment f f f Advertising d Bank loan d Total Cash Outflows f f f Closing balance f f f CBQ08T1.XLS 38

Accounting and Finance: Management Accounting Higher: Cash Budgets Formulae Worksheet (Question 8 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening stock (November) C5... Less: Sales (December) D8... Opening balance (November) C14... Sales (October) B16... Sales (November) C16... Sales (December) D16... Total Cash Inflows (October) B23... Raw materials (November) C25... Direct labour (December) D26... Variable overheads (October) B27... Fixed overheads (November) C28... Equipment (December) D29... Total Cash Outflows (October) B32... Closing balance C33... Budgets: Cash Budgets 39

Accounting and Finance: Management Accounting Higher: Cash Budgets Formulae Worksheet (Question 8 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (January) B16... Sales (February) C16... Sales (March) D16... Raw materials (January) B25... Raw materials (February) C25... Direct labour (January) B26... Direct labour (February) C26... Direct labour (March) D26... Fixed overheads (January) B28... Budgets: Cash Budgets 40

Accounting and Finance: Management Accounting Higher: Cash Budgets EXERCISE 9 - TASK 1 McLintock Ironware uses a spreadsheet to prepare its Production Budget and its Cash Budget for the quarter July to September, based upon the following data. Apr May Jun Jul Aug Sep Production (units) 150 170 180 200 130 110 Sales (units) 100 120 140 160 180 190 Additional information: (a) The cash balance at 1 July is 1,500. (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) The opening stock in April is 20 units. Units are sold at 20 each. Sales are 50% cash and 50% credit. Payment for credit sales is received 2 months after the month of sale. Cash sales customers are allowed a 10% discount. Raw materials costing 6 per unit are all purchased on credit and are paid for 2 months after their use in production. Labour costing 5 per unit is paid for in the month in which it is incurred. Two-thirds of the variable expenses of 3 per unit are paid for in the month of production and the remainder one month later. Fixed overheads are 150 per month and include 50 per month depreciation. A loan of 3,000 is raised in July and repaid in the same month. A new machine costing 26,000 is bought and paid for in September. Heat and light at 2,000 per quarter is paid, the first quarter beginning on 1 April. Investment income of 3,000 is received in July and January. INSTRUCTIONS 1 Load spreadsheet CBQ09T1 into your computer and enter your name in cell D1. 2 Using the data and additional information above, complete the spreadsheet by entering the appropriate (a) data into all cells marked with a d; (b) formulae into all cells marked with an f. 3 Save your amended spreadsheet as CBQ09T1S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 9 - Task 1) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 41

Accounting and Finance: Management Accounting Higher: Cash Budgets EXERCISE 9 - TASK 2 McLintock Ironware decides to make changes to its budgets. The Production Budget and the Cash Budget for the quarter October to December have to be prepared, based upon the following data. Jul Aug Sep Oct Nov Dec Production (units) 180 200 130 140 210 240 Sales (units) 160 180 190 200 220 240 Additional information: (a) (b) (c) (d) (e) (f) Units are sold at 20 each. Sales are 50% cash and 50% credit. Payment for credit sales is received 2 months after the month of sale.. Cash sales customers are allowed a 10% discount, rising to 20% from October. Raw materials costing 6 per unit, rising to 8 per unit from October are all purchased on credit and are paid for 2 months after their use in production Labour costing 5 per unit, rising by 40% from October, is paid for in the month in which it is incurred. Two-thirds of the variable expenses of 3 per unit are paid for in the month of production and the remainder one month later. (g) Fixed overheads are 150 per month and include 50 per month depreciation. The depreciation charged is reduced by 10 from November onwards. (h) Bank charges for October amount to 5,000. (i) (j) Heat and light at 2,000 per quarter is paid, the first quarter beginning on 1 April. Investment income of 3,000 is received in July and January. INSTRUCTIONS 1 Load spreadsheet CBQ09T1S into your computer. 2 Using the data and additional information above, complete the spreadsheet by entering or deleting the appropriate formulae and data. 3 Save your amended spreadsheet as CBQ09T2S. 4 Print your completed spreadsheet. 5 Complete the Formulae Worksheet (Question 9 - Task 2) by writing down the appropriate formulae from your spreadsheet. Budgets: Cash Budgets 42

Accounting and Finance: Management Accounting Higher: Cash Budgets Q9 TASK 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B C D Student Name McLINTOCK IRONWARE Production Budget for the 3-months July August September Units Units Units Opening stock f f f Add: Production d d d f f f Less: Sales f d d Closing stock f f f McLINTOCK IRONWARE Cash Budget for the 3-months July August September Opening balance d f f Add: CASH INFLOWS Sales f f f Loan d Investment income d Total Cash Inflows f f f Less: CASH OUTFLOWS Raw materials f f f Direct labour f f f Variable overheads f f f Fixed overheads f f f Machine d Heat and light d Loan d Total Cash Outflows f f f Closing balance f f f CBQ09T1.XLS 43

Accounting and Finance: Management Accounting Higher: Cash Budgets Formulae Worksheet (Question 9 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening stock (July) B5... Opening stock (August) C5... Closing stock (September) D9... Opening balance (August) C14... Sales (July) B16... Sales (August) C16... Sales (September) D16... Total Cash Inflows (July) B24... Raw materials (August) C26... Direct labour (September) D27... Variable overheads (July) B28... Variable overheads (August) C28... Variable overheads (September) D28... Fixed overheads (July) B29... Total Cash Inflows (August) C34... Closing balance (September) D35... Budgets: Cash Budgets 44

Accounting and Finance: Management Accounting Higher: Cash Budgets Formulae Worksheet (Question 9 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (October) B16... Sales (November) C16... Sales (December) D16... Raw materials (October) B26... Raw materials (November) C26... Raw materials (December) D26... Direct labour (October) B27... Variable overheads (November) C28... Fixed overheads (December) D29... Budgets: Cash Budgets 45

Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

ACCOUNTING AND FINANCE MANAGEMENT ACCOUNTING INTERMEDIATE 2/HIGHER COMPUTER-BASED EXEMPLARS CASH BUDGETS EXEMPLAR SOLUTIONS Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

Accounting and Finance: Management Accounting - Cash Budgets - Int 2/Higher

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q1 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name JOHN ADAMS Cash Budget for the 3-months April May June Opening balance 10000 =B22 =C22 Add: CASH INFLOWS Sales =(32000+40000)*50% =(40000+42000)*50% =(42000+38000)*50% Dividend 2000 Van 2000 Loan 2000 Total Cash Inflows =SUM(B7:B12) =SUM(C7:C12) =SUM(D7:D12) Less: CASH OUTFLOWS Purchases 20000 24000 25000 Wages 6200 6500 7000 Rent 3500 3500 3500 Overheads 300 400 400 Total Cash Outflows =SUM(B15:B20) =SUM(C15:C20) =SUM(D15:D20) Closing balance =B5+B13-B21 =C5+C13-C21 =D5+D13-D21 CBQ01T1F.XLS 49

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q1 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name JOHN ADAMS Cash Budget for the 3-months April May June Opening balance 10,000 16,000 26,600 Add: CASH INFLOWS Sales 36,000 41,000 40,000 Dividend 2,000 Van 2,000 Loan 2,000 Total Cash Inflows 36,000 45,000 42,000 Less: CASH OUTFLOWS Purchases 20,000 24,000 25,000 Wages 6,200 6,500 7,000 Rent 3,500 3,500 3,500 Overheads 300 400 400 Total Cash Outflows 30,000 34,400 35,900 Closing balance 16,000 26,600 32,700 CBQ01T1S.XLS 50

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Formulae Worksheet (Question 1 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (May) C5 =B22 Sales (June) D7 =(42000+38000)*50% Total Cash Inflows (April) B13 =SUM(B7:B12) Total Cash Outflows (May) C21 =SUM(C15:C20) Closing balance (June) D22 =D5+D13-D21 Budgets: Cash Budgets 51

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q1 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name JOHN ADAMS Cash Budget for the 3-months July August September Opening balance 32700 Add: CASH INFLOWS Sales =(38000+36000)*50% =(36000+36000)*50% =(36000+34000)*50% Dividend 2000* Van 2000* Loan 2000* Total Cash Inflows Less: CASH OUTFLOWS Purchases 28000 31000 Wages 7100 7300 7500 Rent Overheads 500 500 600 Vans 40000 Loan 2000 Total Cash Outflows Closing balance * Delete this figure CBQ01T2C.XLS 52

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q1 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name JOHN ADAMS Cash Budget for the 3-months July August September Opening balance 32,700 30,600-15,700 Add: CASH INFLOWS Sales 37,000 36,000 35,000 Dividend Van Loan Total Cash Inflows 37,000 36,000 35,000 Less: CASH OUTFLOWS Purchases 28,000 31,000 25,000 Wages 7,100 7,300 7,500 Rent 3,500 3,500 3,500 Overheads 500 500 600 Vans 40,000 Loan 2,000 Total Cash Outflows 39,100 82,300 38,600 Closing balance 30,600-15,700-19,300 CBQ01T2S.XLS 53

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Formulae Worksheet (Question 1 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (July) B7 =(38000+36000)*50% Sales (August) C7 =(36000+36000)*50% Sales (September) D7 =(36000+34000)*50% Budgets: Cash Budgets 54

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q2 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name LAURA BURNS Cash Budget for the 3-months April May June Opening balance 11000 =B22 =C22 Add: CASH INFLOWS Sales =88000*25%+77000*75% =110000*25%+88000*75% =66000*25%+110000*75% Investment income 500 500 500 Total Cash Inflows =SUM(B7:B12) =SUM(C7:C12) =SUM(D7:D12) Less: CASH OUTFLOWS Materials 33000 38000 44000 Wages 14000 15000 16000 Variable overheads 8800 10000 6600 Fixed overheads 11000 11000 11000 Loan 12000 Dryer 6500 Total Cash Outflows =SUM(B15:B20) =SUM(C15:C20) =SUM(D15:D20) Closing balance =B5+B13-B21 =C5+C13-C21 =D5+D13-D21 CBQ02T1F.XLS 55

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q2 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name LAURA BURNS Cash Budget for the 3-months April May June Opening balance 11,000 24,450 32,450 Add: CASH INFLOWS Sales 79,750 93,500 99,000 Investment income 500 500 500 Total Cash Inflows 80,250 94,000 99,500 Less: CASH OUTFLOWS Materials 33,000 38,000 44,000 Wages 14,000 15,000 16,000 Variable overheads 8,800 10,000 6,600 Fixed overheads 11,000 11,000 11,000 Loan 12,000 Dryer 6,500 Total Cash Outflows 66,800 86,000 84,100 Closing balance 24,450 32,450 47,850 CBQ02T1S.XLS 56

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Formulae Worksheet (Question 2 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (June) D5 =C22 Sales (April) B7 =88000*25%+77000*75% Total Cash Inflows (May) C13 =SUM(C7:C12) Total Cash Outflows (June) D21 =SUM(D15:D20) Closing balance (April) B22 =B5+B13-B21 Budgets: Cash Budgets 57

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q2 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name LAURA BURNS Cash Budget for the 3-months April May June Opening balance Add: CASH INFLOWS Sales =88000*30%+77000*70% =110000*30%+88000*70% =66000*30%+110000*70% Investment income Dividend 400 Total Cash Inflows Less: CASH OUTFLOWS Materials 31000 36000 38000 Wages 17000 19000 21000 Variable overheads 9900 10000 Fixed overheads 12000 12000 12000 Loan 20000 Dryer Total Cash Outflows Closing balance CBQ02T2C.XLS 58

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q2 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D E Student Name LAURA BURNS Cash Budget for the 3-months April May June Opening balance 11,000 23,000 21,600 Add: CASH INFLOWS Sales 80,300 94,600 96,800 Investment income 500 500 500 Dividend 400 Total Cash Inflows 80,800 95,500 97,300 Less: CASH OUTFLOWS Materials 31,000 36,000 38,000 Wages 17,000 19,000 21,000 Variable overheads 8,800 9,900 10,000 Fixed overheads 12,000 12,000 12,000 Loan 20,000 Dryer 6,500 Total Cash Outflows 68,800 96,900 87,500 Closing balance 23,000 21,600 31,400 CBQ02TS.XLS 59

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Formulae Worksheet (Question 2 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (April) B7 =88000*30%+77000*70% Sales (May) C7 =110000*30%+88000*70% Sales (June) D7 =66000*30%+110000*70% Budgets: Cash Budgets 60

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q3 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A B C D Student Name JB CAMPERS plc Cash Budget for the 3-months July August September Opening balance 110000 =B23 =C23 Add: CASH INFLOWS Sales =72000*20%+93000*80% =82500*20%+72000*80% =98600*20%+82500*80% Dividend 10000 Total Cash Inflows =SUM(B7:B12) =SUM(C7:C12) =SUM(D7:D12) Less: CASH OUTFLOWS Purchases 37000 40000 39060 Land 38000 Wages 8800 6000 9600 Selling overheads 3210 3600 3450 Site overheads 5880 6000 5680 Loan 5000 Total Cash Outflows =SUM(B15:B21) =SUM(C15:C21) =SUM(D15:D21) Closing balance =B5+B13-B22 =C5+C13-C22 =D5+D13-D22 CBQ03T1F.XLS 61

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q3 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A B C D Student Name JB CAMPERS plc Cash Budget for the 3-months July August September Opening balance 110,000 105,910 129,410 Add: CASH INFLOWS Sales 88,800 74,100 85,720 Dividend 10,000 Total Cash Inflows 88,800 84,100 85,720 Less: CASH OUTFLOWS Purchases 37,000 40,000 39,060 Land 38,000 Wages 8,800 6,000 9,600 Selling overheads 3,210 3,600 3,450 Site overheads 5,880 6,000 5,680 Loan 5,000 Total Cash Outflows 92,890 60,600 57,790 Closing bbalance 105,910 129,410 157,340 CBQ03T1S.XLS 62

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Formulae Worksheet (Question 3 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (September) D5 =C23 Sales (July) B7 =72000*20%+93000*70% Total Cash Inflows (August) C13 =SUM(C7:C12) Total Cash Outflows (September) D22 =SUM(D15:D21) Closing balance (July) B23 =B5+B13-B22 Budgets: Cash Budgets 63

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q3 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A B C D Student Name JB CAMPERS plc Cash Budget for the 3-months July August September Opening balance Add: CASH INFLOWS Sales =72000*30%+93000*70% =82500*30%+72000*70% =98600*30%+82500*70% Dividend 11000 Total Cash Inflows Less: CASH OUTFLOWS Purchases Land =38000+100000 Wages 6800 6000 5000 Selling overheads Site overheads Loan Machinery 60000 Total Cash Outflows Closing balance CBQ03T2C.XLS 64

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Q3 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 A B C D Student Name JB CAMPERS plc Cash Budget for the 3-months July August September Opening balance 110,000 5,810 31,360 Add: CASH INFLOWS Sales 86,700 75,150 87,330 Dividend 11,000 Total Cash Inflows 86,700 86,150 87,330 Less: CASH OUTFLOWS Purchases 37,000 40,000 39,060 Land 138,000 Wages 6,800 6,000 5,000 Selling overheads 3,210 3,600 3,450 Site overheads 5,880 6,000 5,680 Loan 5,000 Machinery 60,000 Total Cash Outflows 190,890 60,600 113,190 Closing balance 5,810 31,360 5,500 CBQ03T2S.XLS 65

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2 Formulae Worksheet (Question 3 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (July) B7 =72000*30%+93000*70% Sales (August) C7 =82500*30%+72000*70% Sales (September) D7 =98600*30%+82500*70% Land (July) B16 =38000+100000 Budgets: Cash Budgets 66

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q4 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name FERGUSON CO LTD Cash Budget for the 3-months April May June Opening balance 30000 =B22 =C22 Add: CASH INFLOWS Sales =61000*50%*90%+61000*50% =62000*50%*90%+61000*50% =62000*50%*90%+62000*50% Bank loan 10000 Total Cash Inflows =SUM(B7:B12) =SUM(C7:C12) =SUM(D7:D12) Less: CASH OUTFLOWS Materials 15200 16000 16400 Wages 16000 18000 18000 Distribution expenses 4300 4400 4400 General expenses =5200-100 =5300-100 =5300-100 Equipment 3000 Total Cash Outflows =SUM(B15:B20) =SUM(C15:C20) =SUM(D15:D20) Closing balance =B5+B13-B21 =C5+C13-C21 =D5+D13-D21 CBQ04T1F.XLS 67

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q4 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name FERGUSON CO LTD Cash Budget for the 3-months April May June Opening balance 30,000 47,350 59,150 Add: CASH INFLOWS Sales 57,950 58,400 58,900 Bank loan 10,000 Total Cash Inflows 57,950 58,400 68,900 Less: CASH OUTFLOWS Materials 15,200 16,000 16,400 Wages 16,000 18,000 18,000 Distribution expenses 4,300 4,400 4,400 General expenses 5,100 5,200 5,200 Equipment 3,000 Total Cash Outflows 40,600 46,600 44,000 Closing balance 47,350 59,150 84,050 CBQ04T1S.XLS 68

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Formulae Worksheet (Question 4 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (June) D5 =C22 Sales (April) B7 =61000*50%*90%+61000*50% Total Cash Inflows (May) C13 =SUM(C7:C12) General expenses (June) D18 =5300-100 Total Cash Outflows (April) B21 =SUM(B15:B20) Closing balance (May) C23 =C5+C13-C21 Budgets: Cash Budgets 69

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q4 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name FERGUSON CO LTD Cash Budget for the 3-months July August September Opening balance 84050 Add: CASH INFLOWS Sales =67000*50%*80%+62000*50% =65000*50%*80%+67000*50% =67000*50%*80%+65000*50% Bank loan 10000* Total Cash Inflows Less: CASH OUTFLOWS Materials 16400 17100 17200 Wages 18000 18000 20000 Distribution expenses 4500 4500 4600 General expenses =5400-500 =5400-500 =5500-500 Equipment 70000 3000* Advertising 1000 Total Cash Outflows Closing balance * Delete this figure CBQ04T2C.XLS 70

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q4 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C D Student Name FERGUSON CO LTD Cash Budget for the 3-months July August September Opening balance 84,050 28,050 43,050 Add: CASH INFLOWS Sales 57,800 59,500 59,300 Bank loan Total Cash Inflows 57,800 59,500 59,300 Less: CASH OUTFLOWS Materials 16,400 17,100 17,200 Wages 18,000 18,000 20,000 Distribution expenses 4,500 4,500 4,600 General expenses 4,900 4,900 5,000 Equipment 70,000 Advertising 1,000 Total Cash Outflows 113,800 44,500 47,800 Closing balance 28,050 43,050 54,550 CBQ04T2S.XLS 71

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Formulae Worksheet (Question 4 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (July) B7 =67000*50%*80%+62000*50% Sales (August) C7 =65000*50%*80%+67000*50% Sales (September) D7 =67000*50%*80%+65000*50% General expenses (September) D18 =5500-500 Budgets: Cash Budgets 72

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q5 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name GREIGSON BROTHERS Cash Budget for the 3-months September October November Opening balance 3000 =B24 =C24 Add: CASH INFLOWS Sales =3500*50*20%*90%+3000*50*80% =4000*50*20%*90%+3500*50*80% =4000*50*20%*90%+4000*50*80% Total Cash Inflows =SUM(B7:B13) =SUM(C7:C13) =SUM(D7:D13) Less: CASH OUTFLOWS Raw materials =2500*20 =2800*20 =3000*20 Labour =3400*10 =3800*10 =4100*10 Variable overheads =3400*3 =3800*3 =4100*3 Fixed overheads =2600-1000 =2600-1000 =2600-1000 Van 18000 Loan 5000 Total Cash Outflows =SUM(B16:B22) =SUM(C16:C22) =SUM(D16:D22) Closing balance =B5+B14-B23 =C5+C14-C23 =D5+D14-D23 CBQ05T1F.XLS 73

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q5 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name GREIGSON BROTHERS Cash Budget for the 3-months September October November Opening balance 3,000 40,700 109,700 Add: CASH INFLOWS Sales 151,500 176,000 196,000 Total Cash Inflows 151,500 176,000 196,000 Less: CASH OUTFLOWS Raw materials 50,000 56,000 60,000 Labour 34,000 38,000 41,000 Variable overheads 10,200 11,400 12,300 Fixed overheads 1,600 1,600 1,600 Van 18,000 Loan 5,000 Total Cash Outflows 113,800 107,000 119,900 Closing balance 40,700 109,700 185,800 CBQ05T1S.XLS 74

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Formulae Worksheet (Question 5 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (November) D5 =C24 Sales (September) B7 =3500*50*20%*90%+3000*50*80% Total Cash Inflows (October) C13 =SUM(C7:C13) Raw materials (November) D16 =3000*20 Labour (September) B17 =3400*10 Variable overheads (October) C18 =3800*3 Fixed overheads (November) D19 =2600-1000 Total Cash Outflows (September) B23 =SUM(B16:B22) Closing balance (October) C24 =C5+C14-C23 Budgets: Cash Budgets 75

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q5 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 A B C D Student Name GREIGSON BROTHERS Cash Budget for the 3-months December January February Opening balance 185800 Add: CASH INFLOWS Sales =4200*50*30%*80%+4000*50*70% =3500*50*30%*80%+4200*50*70% =2800*50*30%*80%+3500*50*70% Total Cash Inflows Less: CASH OUTFLOWS Raw materials =3400*25 =3800*25 =4100*25 Labour =3900*15 =3500*15 =3000*15 Variable overheads =3900*4 =3500*4 =3000*4 Fixed overheads =3500-2000 =3500-2000 =3500-2000 Van 18000* 20000 Loan 5000* Premises 190000 Total Cash Outflows Closing balance * Delete this figure CBQ05T2C.XLS 76

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q5 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name GREIGSON BROTHERS Cash Budget for the 3-months September October November Opening balance 185,800 25,600 31,600 Add: CASH INFLOWS Sales 190,400 189,000 156,100 Total Cash Inflows 190,400 189,000 156,100 Less: CASH OUTFLOWS Raw materials 85,000 95,000 102,500 Labour 58,500 52,500 45,000 Variable overheads 15,600 14,000 12,000 Fixed overheads 1,500 1,500 1,500 Van 20,000 Loan Premises 190,000 Total Cash Outflows 350,600 183,000 161,000 Closing balance 25,600 31,600 26,700 CBQ05T2S.XLS 77

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Formulae Worksheet (Question 5 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (December) B7 =4200*50*30%*80%+4000*50*70% Sales (January) C7 =3500*50*30%*80%+4200*50 Sales (February) D7 =2800*50*30%*80%+3500*50*70% Raw materials (December) B16 =3400*25 Labour (January) C17 =3500*15 Variable overheads (February) D18 =3000*4 Fixed overheads (December) B19 =3500-2000 Budgets: Cash Budgets 78

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q6 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name HARRISON plc Cash Budget for the 3-months July August September Opening balance 3000 =B24 =C24 Add: CASH INFLOWS Sales =(600*90%+4000)*20 =(700*90%+4300)*20 =(500*90%+4400)*20 Bank loan 12000 Investment income 800 800 800 Total Cash Inflows =SUM(B7:B13) =SUM(C7:C13) =SUM(D7:D13) Less: CASH OUTFLOWS Raw materials =1200*3 =1350*3 =1550*3 Labour =1450*8 =1650*8 =1500*8 Production expenses =1450*4 =1650*4 =1500*4 Fixed costs =3500-1500 =3500-1500 =3500-1500 Machine 50000 Electricity 400 Total Cash Outflows =SUM(B16:B22) =SUM(C16:C22) =SUM(D16:D22) Closing balance =B5+B14-B23 =C5+C14-C23 =D5+D14-D23 CBQ06T1F.XLS 79

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q6 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name HARRISON plc Cash Budget for the 3-months July August September Opening balance 3,000 83,600 107,150 Add: CASH INFLOWS Sales 90,800 98,600 97,000 Bank loan 12,000 Investment income 800 800 800 Total Cash Inflows 103,600 99,400 97,800 Less: CASH OUTFLOWS Raw materials 3,600 4,050 4,650 Labour 11,600 13,200 12,000 Production expenses 5,800 6,600 6,000 Fixed costs 2,000 2,000 2,000 Machine 50,000 Electricity 400 Total Cash Outflows 23,000 75,850 25,050 Closing balance 83,600 107,150 179,900 CBQ06T1S.XLS 80

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Formulae Worksheet (Question 6 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening balance (September) D5 =C24 Sales (July) B7 =(600*90%+4000)*20 Total Cash Inflows (August) C14 =SUM(C7:C13) Raw materials (September) D16 =1550*3 Labour (July) B17 =1450*8 Production expenses (August) C18 =1650*4 Fixed costs (September) D19 =3500-1500 Total Cash Outflows (July) B23 =SUM(B16:B22) Closing balance (August) C24 =C5+C14-C23 Budgets: Cash Budgets 81

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q6 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 A B C D Student Name HARRISON plc Cash Budget for the 3-months October November December Opening balance 179900 Add: CASH INFLOWS Sales =500*80%*25+3800*20 =600*80%*25+3000*20 =600*80%*25+3200*20 Bank loan 12000* Investment income Total Cash Inflows Less: CASH OUTFLOWS Raw materials =1450*3 =1650*3 =1500*3 Labour =1400*10 =1400*10 =1500*10 Production expenses =1400*4 =1400*4 =1500*4 Fixed costs =5000-2000 =5000-2000 =5000-2000 Machine 50000* Electricity 400* Premises 250000 Total Cash Outflows Closing balance * Delete this figure CBQ06T2C.XLS 82

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Q6 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A B C D Student Name HARRISON plc Cash Budget for the 3-months October November December Opening balance 179,900-10,250 35,000 Add: CASH INFLOWS Sales 86,000 72,000 76,000 Bank loan Investment income 800 800 800 Total Cash Inflows 86,800 72,800 76,800 Less: CASH OUTFLOWS Raw materials 4,350 4,950 4,500 Labour 14,000 14,000 15,000 Production expenses 5,600 5,600 6,000 Fixed costs 3,000 3,000 3,000 Machine Electricity Premises 250,000 Total Cash Outflows 276,950 27,550 28,500 Closing balance -10,250 35,000 83,300 CBQ06T2S.XLS 83

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Int 2/Higher Formulae Worksheet (Question 6 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (October) B7 =500*80%*25+3800*20*70% Sales (November) C7 =600*80%*25+3000*20*70% Sales (December) D7 =600*80%*25+3200*20*70% Raw materials (October) B16 =1450*3 Labour (November) C17 =1400*10 Production expenses (December) D18 =1500*4 Fixed costs (October) B19 =5000-2000 Budgets: Cash Budgets 84

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q7 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D Student Name KLIENGUARD plc Production Budget for the 3-months October November December Units Units Units Opening stock =50+600+550+450-400-450-500 =B9 =C9 Add: Production 650 700 750 =B5+B6 =C5+C6 =D5+D6 Less: Sales 600 550 700 Closing stock =B7-B8 =C7-C8 =D7-D8 KLIENGUARD plc Cash Budget for the 3-months October November December Opening balance 900 =B33 =C33 Add: CASH INFLOWS Sales =((600*90%+450)*50%)*10 =((550*90%+500)*50%)*10 =((700*90%+600)*50%)*10 Bank loan 2000 Total Cash Inflows =SUM(B16:B22) =SUM(C16:C22) =SUM(D16:D22) Less: CASH OUTFLOWS Raw materials =(650*25%+550*75%)*4 =(700*25%+450*75%)*4 =(750*25%+650*75%)*4 Direct labour 650 700 750 Variable overheads =650*2 =700*2 =750*2 Fixed overheads =100-30 =100-30 =100-30 Insurance 200 Delivery van 10200 Total Cash Outflows =SUM(B25:B31) =SUM(C25:C31) =SUM(D25:D31) Closing balance =B14+B23-B32 =C14+C23-C32 =D14+D23-D32 CBQ07T1F.XLS 85

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q7 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D Student Name KLIENGUARD plc Production Budget for the 3-months October November December Units Units Units Opening stock 300 350 500 Add: Production 650 700 750 950 1,050 1,250 Less: Sales 600 550 700 Closing stock 350 500 550 KLIENGUARD plc Cash Budget for the 3-months October November December Opening balance 900 3,530-5,915 Add: CASH INFLOWS Sales 4,950 4,975 6,150 Bank loan 2,000 Total Cash Inflows 6,950 4,975 6,150 Less: CASH OUTFLOWS Raw materials 2,300 2,050 2,700 Direct labour 650 700 750 Variable overheads 1,300 1,400 1,500 Fixed overheads 70 70 70 Insurance 200 Delivery van 10,200 Total Cash Outflows 4,320 14,420 5,220 Closing balance 3,530-5,915-4,985 CBQ07T1S.XLS 86

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Formulae Worksheet (Question 7 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening stock (October) B5 =50+600+550+450-400-450-500 Opening stock (November) C5 =B9 Closing stock (December) D9 =D7-D8 Sales (October) B16 =((600*90%+450)*50%)*10 Total Cash Inflows (November) C23 =SUM(C16:C22) Raw materials (December) D25 =(750*25%+650*75%)*4 Variable overheads (October) B27 =650*2 Fixed overheads (November) C28 =100-30 Total Cash Outflows (December) D32 =SUM(D25:D31) Closing balance (October) B33 =B14+B23-B32 Budgets: Cash Budgets 87

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q7 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B C D Student Name KLIENGUARD plc Production Budget for the 3-months January February March Units Units Units Opening stock 550 Add: Production 750 750 800 Less: Sales 800 800 820 Closing stock KLIENGUARD plc Cash Budget for the 3-months October November December Opening balance -4985 Add: CASH INFLOWS Sales =(800*80%*12+550*10)*50% =(800*80%*12+700*10)*50% =((820*80%+800)*50%)*12 Bank loan 2000* 3000 Total Cash Inflows Less: CASH OUTFLOWS Raw materials =750*6*25%+700*4*75% =750*6*25%+750*4*75% =(800*25%+750*75%)*6 Direct labour 750 750 800 Variable overheads =750*3 =750*3 =800*3 Fixed overheads =150-30 =150-30 =150-30 Insurance Delivery van 10200* Total Cash Outflows Closing balance * Delete this figure CBQ07T2C.XLS 88

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q7 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D E Student Name KLIENGUARD plc Production Budget for the 3-months January February March Units Units Units Opening stock 550 500 450 Add: Production 750 750 800 1,300 1,250 1,250 Less: Sales 800 800 820 Closing stock 500 450 430 KLIENGUARD plc Cash Budget for the 3-months January February March Opening balance -4,985-4,740-895 Add: CASH INFLOWS Sales 6,590 7,340 8,736 Bank loan Dividend 3,000 Total Cash Inflows 6,590 10,340 8,736 Less: CASH OUTFLOWS Raw materials 3,225 3,375 4,575 Direct labour 750 750 800 Variable overheads 2,250 2,250 2,400 Fixed overheads 120 120 120 Insurance 200 Delivery van Total Cash Outflows 6,345 6,495 8,095 Closing balance -4,740-895 -254 CBQ07T2S.XLS 89

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Formulae Worksheet (Question 7 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (January) B16 =(800*80%*12+550*10)*50% Sales (February) C16 =(800*80%*12+700*10)*50% Sales (March) D16 =((820*80%+800)*50%)*12 Raw materials (January) B25 =750*6*25%+700*4*75% Raw materials (February) C25 =750*6*25%+750*4*75% Raw materials (March) D25 =(800*25%+750*75%)*6 Budgets: Cash Budgets 90

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q8 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D Student Name LINPRO plc Production Budget for the 3-month October November December Units Units Units Opening stock 800 =B9 =C9 Add: Production 4000 1550 3500 =B5+B6 =C5+C6 =D5+D6 Less: Sales =B7-B9 =C7-C9 =D7-D9 Closing stock 400 450 950 LINPRO plc Cash Budget for the 3-months October November December Opening balance 20000 =B33 =C33 Add: CASH INFLOWS Sales =((B8*20%*90%)+((500+3000-300)*80%))*30=((C8*20%*90%)+((300+2500-800)*80%))*30=((D8*20%*90%)+(4400*80%))*30 Investment income 2000 2000 2000 Total Cash Inflows =SUM(B16:B22) =SUM(C16:C22) =SUM(D16:D22) Less: CASH OUTFLOWS Raw materials =2500*5 =4000*5 =1550*5 Direct labour =IF(B6>2500,B6*16-2500,B6*15) =IF(C6>2500,C6*16-2500,C6*15) =IF(D6>2500,D6*16-2500,D6*15) Variable overheads =B6*2 =C6*2 =D6*2 Fixed overheads =2400-600 =2400-600 =2400-600 Equipment =30000/3 =30000/3 =30000/3 Advertising 5000 Bank loan 3000 Total Cash Outflows =SUM(B25:B31) =SUM(C25:C31) =SUM(D25:D31) Closing balance =B14+B23-B32 =C14+C23-C32 =D14+D23-D32 CBQ08T1F.XLS 91

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q8 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D Student Name LINPRO plc Production Budget for the 3-months October November December Units Units Units Opening stock 800 400 450 Add: Production 4,000 1,550 3,500 4,800 1,950 3,950 Less: Sales 4,400 1,500 3,000 Closing stock 400 450 950 LINPRO plc Cash Budget for the 3-months October November December Opening balance 20,000 28,760 28,710 Add: CASH INFLOWS Sales 100,560 56,100 121,800 Investment income 2,000 2,000 2,000 Total Cash Inflows 102,560 58,100 123,800 Less: CASH OUTFLOWS Raw materials 12,500 20,000 7,750 Direct labour 61,500 23,250 53,500 Variable overheads 8,000 3,100 7,000 Fixed overheads 1,800 1,800 1,800 Equipment 10,000 10,000 10,000 Advertising 5,000 Bank loan 3,000 Total Cash Outflows 93,800 58,150 88,050 Closing balance 28,760 28,710 64,460 CBQ08T1S.XLS 92

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Formulae Worksheet (Question 8 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening stock (November) C5 =B9 Less: Sales (December) D8 =D7-D9 Opening balance (November) C14 =B33 Sales (October) B16 =((B8*20%*90%)+((500+3000-300)*80%))*30 Sales (November) C16 =((C8*20%*90%)+((300+2500-800)*80%))*30 Sales (December) D16 =((D8*20%*90%)+(4400*80%))*30 Total Cash Inflows (October) B23 =SUM(B16:B22) Raw materials (November) C25 =4000*5 Direct labour (December) D26 =IF(D6>2500,D6*16-2500,D6*15) Variable overheads (October) B27 =B6*2 Fixed overheads (November) C28 =2400-600 Equipment (December) D29 =30000/3 Total Cash Outflows (October) B32 =SUM(B25:B31) Closing balance C33 =C14+C23-C32 Budgets: Cash Budgets 93

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q8 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B C D Student Name LINPRO plc Production Budget for the 3-monthsJanuary February March Units Units Units Opening stock 950 Add: Production 2800 3000 2900 Less: Sales Closing stock 800 800 750 LINPRO plc Cash Budget for the 3-months January February March Opening balance 64460 Add: CASH INFLOWS Sales =((B8*10%*80%)+(1500*80%))*30 =((C8*10%*80%)+(3000*80%))*30 =((D8*10%*80%)+(B8*90%))*30 Investment income Total Cash Inflows Less: CASH OUTFLOWS Raw materials =3500*5 =B6*6 =C6*6 Direct labour =IF(B6>2000,B6*17-2000*2,B6*15) =IF(C6>2000,C6*17-2000*2,C6*15) =IF(D6>2000,D6*17-2000*2,D6*15) Variable overheads Fixed overheads =2400-600+1000 =2400-600+1000 =2400-600+1000 Equipment 100000 10000* 10000* Advertising Bank loan 3000* Total Cash Outflows Closing balance * Delete this cell CBQ08T2C.XLS 94

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q8 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 A B C D Student Name LINPRO plc Production Budget for the 3-months October November December Units Units Units Opening stock 950 800 800 Add: Production 2,800 3,000 2,900 3,750 3,800 3,700 Less: Sales 2,950 3,000 2,950 Closing stock 800 800 750 LINPRO plc Cash Budget for the 3-months October November December Opening balance 64,460-59,960-51,360 Add: CASH INFLOWS Sales 43,080 79,200 86,730 Investment income 2,000 2,000 2,000 Total Cash Inflows 45,080 81,200 88,730 Less: CASH OUTFLOWS Raw materials 17,500 16,800 18,000 Direct labour 43,600 47,000 45,300 Variable overheads 5,600 6,000 5,800 Fixed overheads 2,800 2,800 2,800 Equipment 100,000 Advertising 5,000 Bank loan Total Cash Outflows 169,500 72,600 76,900 Closing balance -59,960-51,360-39,530 CBQ08T2S.XLS 95

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Formulae Worksheet (Question 8 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (January) B16 =((B8*10%*80%)+(1500*80%))*30 Sales (February) C16 =((C8*10%*80%)+(3000*80%))*30 Sales (March) D16 =((D8*10%*80%)+(B8*90%))*30 Raw materials (January) B25 =3500*5 Raw materials (February) C25 =B6*6 Direct labour (January) B26 =IF(B6>2000,B6*17-2000*2,B6*15) Direct labour (February) C26 =IF(C6>2000,C6*17-2000*2,C6*15) Direct labour (March) D26 =IF(D6>2000,D6*17-2000*2,D6*15) Fixed overheads (January) B28 =2400-600+1000 Budgets: Cash Budgets 96

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q9 TASK 1 FORMULAE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B C D Student Name McLINTOCK IRONWARE Production Budget for the 3-months July August September Units Units Units Opening stock =20+150+170+180-100-120-140 =B9 =C9 Add: Production 200 130 110 =B5+B6 =C5+C6 =D5+D6 Less: Sales 160 180 190 Closing stock =B7-B8 =C7-C8 =D7-D8 McLINTOCK IRONWARE Cash Budget for the 3-months July August September Opening balance 1500 =B35 =C35 Add: CASH INFLOWS Sales =(B8*50%*90%+120*50%)*20 =(C8*50%*90%+140*50%)*20 =(D8*50%*90%+B8*50%)*20 Loan 3000 Investment income 3000 Total Cash Inflows =SUM(B16:B23) =SUM(C16:C23) =SUM(D16:D23) Less: CASH OUTFLOWS Raw materials =170*6 =180*6 =200*6 Direct labour =B6*5 =C6*5 =D6*5 Variable overheads =(B6*2+180)/3*3 =(C6*2+B6)/3*3 =(D6*2+C6)/3*3 Fixed overheads =150-50 =150-50 =150-50 Machine 26000 Heat and light 2000 Loan 3000 Total Cash Outflows =SUM(B26:B33) =SUM(C26:C33) =SUM(D26:D33) Closing balance =B14+B24-B34 =C14+C24-C34 =D14+D24-D34 CBQ09T1F.XLS 97

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q9 TASK 1 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B C D Student Name McLINTOCK IRONWARE Production Budget for the 3-months July August September Units Units Units Opening stock 160 200 150 Add: Production 200 130 110 360 330 260 Less: Sales 160 180 190 Closing stock 200 150 70 McLINTOCK IRONWARE Cash Budget for the 3-months July August September Opening balance 1,500 2,440 3,170 Add: CASH INFLOWS Sales 2,640 3,020 3,310 Loan 3,000 Investment income 3,000 Total Cash Inflows 8,640 3,020 3,310 Less: CASH OUTFLOWS Raw materials 1,020 1,080 1,200 Direct labour 1,000 650 550 Variable overheads 580 460 350 Fixed overheads 100 100 100 Machine 26,000 Heat and light 2,000 Loan 3,000 Total Cash Outflows 7,700 2,290 28,200 Closing balance 2,440 3,170-21,720 CBQ09T1S.XLS 98

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Formulae Worksheet (Question 9 - Task 1) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Opening stock (July) B5 =20+150+170+180-100-120-140 Opening stock (August) C5 =B9 Closing stock (September) D9 =D7-D8 Opening balance (August) C14 =B35 Sales (July) B16 =(B8*50%*90%+120*50%)*20 Sales (August) C16 =(C8*50%*90%+140*50%)*20 Sales (September) D16 =(D8*50%*90%+B8*50%)*20 Total Cash Inflows (July) B24 =SUM(B16:B23) Raw materials (August) C26 =180*6 Direct labour (September) D27 =D6*5 Variable overheads (July) B28 =(B6*2+180)/3*3 Variable overheads (August) C28 =(C6*2+B6)/3*3 Variable overheads (September) D28 =(D6*2+C6)/3*3 Fixed overheads (July) B29 =150-50 Total Cash Inflows (August) C34 =SUM(C26:C33) Closing balance (September) D35 =D14+D24-D34 Budgets: Cash Budgets 99

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q9 TASK 2 CHANGES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 A B C D Student Name McLINTOCK IRONWARE Production Budget for the 3-months October November December Units Units Units Opening stock 70 Add: Production 140 210 240 Less: Sales 200 220 240 Closing stock McLINTOCK IRONWARE Cash Budget for the 3-months October November December Opening balance -21720 Add: CASH INFLOWS Sales =(B8*50%*80%+180*50%)*20 =(C8*50%*80%+190*50%)*20 =(D8*50%*80%+200*50%)*20 Loan 3000* Investment income 3000* Total Cash Inflows Less: CASH OUTFLOWS Raw materials =200*6 =130*6 =B6*8 Direct labour =B6*5*140% =C6*5*140% =D6*5*140% Variable overheads =(B6*2+130)/3*3 =(C6*2+B6)/3*3 =(D6*2+C6)/3*3 Fixed overheads =150-50+10 =150-50+10 Machine *26000 Heat and light Loan 3000* Bank charges 5000 Total Cash Outflows Closing balance * Delete this figure CBQ09T2C.XLS 100

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Q9 TASK 2 SOLUTION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 A B C D Student Name McLINTOCK IRONWARE Production Budget for the 3-months July August September Units Units Units Opening stock 70 10 0 Add: Production 140 210 240 210 220 240 Less: Sales 200 220 240 Closing stock 10 0 0 McLINTOCK IRONWARE Cash Budget for the 3-months July August September Opening balance -21,720-28,010-27,270 Add: CASH INFLOWS Sales 3,400 3,660 3,920 Loan Investment income Total Cash Inflows 3,400 3,660 3,920 Less: CASH OUTFLOWS Raw materials 1,200 780 1,120 Direct labour 980 1,470 1,680 Variable overheads 410 560 690 Fixed overheads 100 110 110 Machine Heat and light 2,000 Loan Bank charges 5,000 Total Cash Outflows 9,690 2,920 3,600 Closing balance -28,010-27,270-26,950 CBQ09T2S.XLS 101

Accounting and Finance: Management Accounting: Cash Budgets: Exemplar Solutions Higher Formulae Worksheet (Question 9 - Task 2) Complete this worksheet with the appropriate formula for each spreadsheet cell as indicated. Item Cell Formula Sales (October) B16 =(B8*50%*80%+180*50%)*20 Sales (November) C16 =(C8*50%*80%+190*50%)*20 Sales (December) D16 =(D8*50%*80%+200*50%)*20 Raw materials (October) B26 =200*6 Raw materials (November) C26 =130*6 Raw materials (December) D26 =B6*8 Direct labour (October) B27 =B6*5*140% Variable overheads (November) C28 =(C6*2+B6)/3*3 Fixed overheads (December) D29 =150-50+10 Budgets: Cash Budgets 102