[Emthim01]

I got this assignment .I am requested to com1.
1.Compare your budget for the last three (3) months with your actual
2.Identify potential weaknesses in the budget. In completing this analysis, please complete:
A profitability ratio
Return on investment
3.Develop a new master budget and do a budget forecast for revenue for the next three months, addressing problem areas previously identified. Make use of one of the forecasting methods. If you are not responsible for the revenue budget, use your best estimates
4.Describe and motivate in detail the key decisions you will make, implement and maintain in order to improve the financial viability of your unit

[Curlyben]

So what do YOU think.
While we're happy to HELP we won't do all the work for you.
Also as WE don't have access to the previous work you have done, we can't actually help here.

[Emthim01]

So what do YOU think.
While we're happy to HELP we wont do all the work for you.
Also as WE don't have access to the previous work you have done, we can't actually help here.

CASH BUDGET CATIGA ELECTRONIC CC
1.On 1 January 2011 the favourable bank balance amounted to R22 500.

2.Budgeted and actual figures so far :

Actual R Budgeted R
October November December January February March
Credit Sales 67,500 63,000 72,000 90,000 99,000 87,000
Purchases 36,000 34,500 39,000 45,000 54,000 46,500
Sundry Expenses 5,775 6,600 7,425 7,755 7,920 8,662
Depreciation


3.All sales are on credit and 7% discount is allowed if payment is made within 30 days
After the month of sales.

Cash received from accounts receivable as follows:
65% within 30 days
25% within 60 days
7% within 90 days
3% is bad dept

Sundry expenses are paid immediately.

Purchases are paid as follows:
50% of all purchases are paid in cash
50% are paid 30 days after statement date.

CASH BUDGET FOR JANUARY , FEBRUARY AND MARCH 2011

Cash budget items January February March
Opening Balance 22,500 36,744 56,139

Received from accounts receivable 63,999 76,815 87,38
65% (Dec,Jan and Feb) - 7% 43,524 54,405 59,846
25% (Nov,Dec and Jan) 15,750 18,000 22,500
7% (Oct,Nov and Dec) 4,725 4,410 5,040

Cash available 63,999 76,815 87,386

Cash Purchases (Current Month) 22,500 27,000 23,250
Paid to Accounts payable 19,500 22,500 27,000
Sundry Expenses 7,755 7,920 8,662

Total cash paid 49,755 57,420 58,912

Closing Balance 36,744 56,139 84,613

Profitability Ratio : 0.97
Return on Investment : 0.27


Master Cash budget Catiga Electronic CC.

R
Budgeted sales 276000
Budgeted cost of sales 145500
130500

Opening inventory 109500
Budgeted production costs 24337
Budgeted closing inventory 200018
-66181

Budgeted gross profit 130500
Budgeted selling and administration expenses. 24337


Budgeted operating profit 93212