the accounts of the sage 2008
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Title: the accounts of the sage 2008

Essay Details:

Subject: Business
Author: John A
Date: September 17, 2013
Level: University
Grade: A
Length: 4 / 989

Essay text:

Suppliers of materials and expenses allow one month's credit. (3) A payment of ?3,500,000 for new fixed assets is to be made in November. (4) The proceeds from the sale of land, amounting to ?2,000,000, is to be received in December. (5) The expected cash balance at 1st. August is ?750,000. (6) Lake plc. does not have a bank overdraft facility at present. Required: [a] Prepare a cash budget for the FOUR months to 31st. December (by month and in total). (60%) [b] Discuss the significant features in the cash budget which you have calculated for Lake plc. (40%) 2.The following budget report has been prepared for the Canterford division of a large group of companies: Canterford Division Budget Report for July Budget Actual Variance Sales (units) 500,000 525,000 ?000 ?000 ?000 Sales 50,000 53,000 3,000 (F) Less Direct Materials 15,000 16,000 1,000(A) Direct Labour 8,000 8,500 500(A) Production Overheads 4,000 5,000 1,000(A) Selling & Distribution Overheads 1,200 1,300 100(A) Administration Overheads 800 850 50(A) Absorbed Group Overheads 2,000 2,500 500(A) Total Cost 31,000 34,150 3,150(A) Net Profit 19,000 18,850 150(A) On investigation, you find that : ? Direct materials and labour are entirely variable...

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