Student Name: Romario Nigel Austin

McGrath high school

Accounting
Internal assessment
Unit 2
Module 3 test
Planning and Decision making

Section 1
1. A 11. A 21. C
2. C 12. D 22. A
3. C 13. A 23. D
4. C 14. B 24. A
5. D 15. B 25. A
6. C 16. C 26. B
7. A 17. C 27.
8. C 18. A 28.
9. A 19. C 29.
10. B 20. B 30. B
31. A 41. A
32. A 42. D
33. C 43. C
34. A 44. B
35. B 45. C
36. B
37. C
38. B
39. A
40. D

Section 2
CBD CASH BUDGET FOR THE QUARTER ENDED SEP.30
 Details July August September
Cash receipts Inflows
Cash sales 60% $54,000 $78,000 $66,000
Cash collected from last month 40% $28,000 $36,000 $52,000
Total Inflows $82,000 $114,000 $118,000

Less Cash Disbursement (Out Flows)

Payments on purchase $72,000 $104,000 $88,000
Rent expense $2500 $2500 $2500
Wages and salaries $8000 $10,000 $12,000
Interest [(0.07% of 100000) *1/4] - - $1750
Purchase of Firk - lift Truck $7500
Short term borrowing (13%) - - -
Total out flows ($90,000) ($116,500) ($104,250)
Net cash flow (-$8000) (-$2500) $13750
Add ending cash balance from last month $67,000 $59,000 $56,500

Ending balance $59,000 $56,500 $70,250

Cash sale
July = 60% / 100 * 90,000 = 54,000

August = 60% / 100 * 130,000 = 78,000

September = 60% / 100 * 110,000 = 66,000

Cash collected
JULY
40% OF JUNE (70,000). 40% / 100 * 70,000 =28,000

AUGUST
40% OF JULY (90,000). 40% / 100 * 90,000 =36,000

SEPTEMBER
40% OF AUGUST (130,000). 40% / 100 * 130,000 =52,000

Total inflow
Cash sale 60% + cash collected of last month 40%
July = 54,000 + 28,000 = 82,000

August = 78,000 + 36,000 = 114,000

September = 66,000 + 52,000 = 118,000

Payments on purchase
80% of sales
July = 80% / 100 * 90,000 = 72,000

August = 80% /100 * 130,000 = 104,000

September = 80% / 100 * 110,000 = 88,000

Interest
[(0.07% of 100000) *1/4]
July -------

August -------

September = [(0.07% of 100000) *1/4 = 1750

Total out flows

Payments on purchase + Rent expense + Wages and salaries + Interest [(0.07% of
100000) *1/4] + Purchase of Firk - lift Truck

July August September

$72,000 $104,000 $88,000
$2500 $2500 $2500
$8000 $10,000 $12,000
$7500 $1750
=$90,000 = $116,500 = $104,250