Scribd Logo
Upload

Welcome to Scribd!

  • Chapter 9: Budgeting Systems: Information Given: Sales ($)

    Uploaded by

    Holsk Nyberg
    8 views2 pages
    The document provides a cash budget for Happy Pets veterinary clinic for January, February, and March. It shows cash receipts from consultations two months prior and the current month. It also lists cash payments for supplies from the previous month, current month's purchases, salaries, and other costs. By March, the closing cash balance is projected to be negative $390,000, indicating cash flow issues. It recommends Tilley set benchmarks for expenditures and incomes to keep cash flow positive and offer early payment discounts to consultants to increase cash receipts.

    Original Description:

    MA

    Original Title

    Ma Budgeting

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides a cash budget for Happy Pets veterinary clinic for January, February, and March. It shows cash receipts from consultations two months prior and the current month. It also lists cash payments for supplies from the previous month, current month's purchases, salaries, and other costs. By March, the closing cash balance is projected to be negative $390,000, indicating cash flow issues. It recommends Tilley set benchmarks for expenditures and incomes to keep cash flow positive and offer early payment discounts to consultants to increase cash receipts.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views2 pages

    Chapter 9: Budgeting Systems: Information Given: Sales ($)

    Uploaded by

    Holsk Nyberg
    The document provides a cash budget for Happy Pets veterinary clinic for January, February, and March. It shows cash receipts from consultations two months prior and the current month. It also lists cash payments for supplies from the previous month, current month's purchases, salaries, and other costs. By March, the closing cash balance is projected to be negative $390,000, indicating cash flow issues. It recommends Tilley set benchmarks for expenditures and incomes to keep cash flow positive and offer early payment discounts to consultants to increase cash receipts.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    CHAPTER 9: BUDGETING SYSTEMS

    QUESTION: E9.27

    Cash budgeting ; Happy Pets veterinary clinic


    Information given:
    Sales ($)
    November
    December
    January
    February
    March

    200,000
    225,000
    75,000
    225,000
    200,000

    Purchases ($)
    December
    January
    February

    75,000
    0
    125,000

    1)

    CASH BUDGET

    Opening cash balance


    Cash received from consultations :
    Two months ago
    Last month
    Current month
    Total cash receipts
    Cash Payment
    supplies :
    Previous month's purchases
    Current month's purchases
    Salaries
    Other costs
    Total cash payments
    Closing cash balance

    January ($) February ($)


    -200,000
    -282,500

    March ($)
    -325,000

    40,000
    45,000
    45,000
    130,000

    45,000
    15,000
    135,000
    195,000

    7,500
    45,000
    120,000
    172,500

    37,500
    0

    62,500

    62,500

    100,000
    75,000
    212,500
    -282,500

    100,000
    75,000
    237,500
    -325,000

    100,000
    75,000
    237,500
    -390,000

    2) Tilley should set a benchmark or standard of expenditures and incomes to ensure their cash flow
    always in positive. Since the most problem shows that lack in cash received from
    customers/consultant's, Tilley is recommend to offer discount to those consultants
    who make the payment early.

    heir cash flow

    You might also like