Section A

Q1. A. the sales budget would include the first quarter for the 2023 for the first quarter will be
$370,000.
B. introducing good cash flow management system and possible sources of borrowings.
Since the cost of the raw materials has been increased, the good cash flow management would
be accounted for the need to produce more output. The possible sources of the borrowings
would include the bank loan, the borrowing from the friends, and there would be essential needs
for the future. The friend might not charge the cost of the capital being raised. As the cost of the
raw material has been increased therefore there would be the need for the essential need for
the raising of the additional resources of the finance that will be available. Good cash flow
management might require the need for the effective working capital requirements that will be
raised from the running of the business operations. The possible sources of cash flow
management would include the need for the effective treatment options that will be available.
There are essential borrowing funds that will be placed in the banking system or the customer
might be able to provide for the running of the businesses. The businesses would essential be
required to look out for the new sources of cheaper funds because of the cost of the capital that
will be rising. The cheaper cost of the finance raised would be effective for the business
operations that will be utilized as there could be the repercussion for the enormous business
opportunities. Since, the healthy faces challenges of rising cost, there will be another strategy to
curb the increase in the business. the need for the effective cost management and the cash
flows management might be needed due to the rising cost of the inflation and the need for the
effective policies that will be implemented. There will be the need for the good cash flow
management as there will be the need for the quick fix of the issues. The number of other
factors that would be included being the supplies that will be provided should be cost effective.
The borrowings will be having the cost attached with it, therefore, they might be expensive and
therefore the need for the repayment of these funds would be arisen. The number of other
resources that will have to be accomplished to make sure that there will be the need for the
good cash flow management. The benefits of good cash flows management would be required
as these would provide for the essential treatment options and there would be the need for the
better and quick treatment methods for the raising of the funds and being indebtedness. The
repercussion will be essential because of the number of the reason that will be effective
because of the number of the factor that will be important.
Q3. NPV at 12% would be expected cash flows would be 2580,000, initial capital outlay is
1000,000. The net present value would be 1580,000 without the cost of capital consideration for
the discount.
The payback period will be from around the 1 year to the 1.5 year for the initial capital outlay
recoup.
The accounting rate of return will be around 80% approx
B. The investment must be made in the Southend, because of the number of the factors such as
these project would be providing higher profitability and the cash flows which will enable the
company to recoup its initial capital outlay and therefore the payback period will be lower and
hence the need for the effective implementation. The rise in the profitability as compared to
Colchester project which would be requiring the lower rate of the profitability and cash flows will
be lowering. The cash flows will be more important because of the need for the incorporation of
the net present value method of investment appraisal technique. Therefore, the Southend
project should be invested because of the higher profitability and the increased net present
value would be recorded and hence anticipated. The number of other factors that would be
included because of the reason that the current living cost and the crisis that will be managed.
According to the various policies the need for the right choice of the projects being selected.
There will be substantial amount of funds being investment. The expected returns of the project
will be rising because at the end of the project less amount might be deducted. The living cost
has been rising because of the inflation in the country and therefore there might be the need for
the effective polices to curb the inflation. The inflation must be controlled to enable the need for
the effectiveness and the good quality of the business operations being successful. The political
crises will be the need to be controlled because of the number of the political disturbances could
lead to the wrong business being performed because of hyperinflation.
Section B
Q5.
If I would be the chancellor of the exchequer, I would have followed the incremental based
budgeting as compared to the zero based budgeting. The incremental based budgeting would
need to be accounted for the increase in the budgets that will be accommodated because of the
number of the factors. The zero based budgeting would account for the budgeting from the
scratch because of the essential need for the businesses. The zero based budgeting would help
provide for the business units formation that will require the budgeting approach to be
undertaken. The incremental budgeting approach would be essential as this could provide for
the means of the new areas that will need to be accommodated. The existing budgeting
methods would be accounted for the new areas such as, the increase in the cost of the raw
material and the labor cost, which will need to be accounted for in the budgeting cost. The
business cost will be higher because of the number of the reason. The cost might include the
raw material cost and the labor cost that will be accounted for the rise in the cost of the inflation.
The means for the businesses to account for the incremental cost method. The incremental cost
basis method would need to be based on the methods that will be applied for the effective
budgeting approach. There are various budgeting methods that need to be undertaken. The
incremental budgeting method has been used by the firms to establish make sure the need for
the new areas such as the rise in the cost of the raw material that will need to be accounted for
by the means of the essential price rise. However, the zero based budgeting approach will need
to have to be prepared from the scratch that will be important. The new ground for the budgeting
would provide for the essential new cost center to be establish for the purpose of the budgeting.
The incremental cost method would provide for the comparative analysis and would therefore
be necessary for the effective implementation to the budgeting of these cost centers. The cost
center provide for the exact cost estimate that will be made for the purpose of the comparison.
The zero based budgeting method would provide for the essential treatment of the cost basis
approach against the cash basis approach for the budgeting. The budgets must be accounted
for the consideration of the key cost drivers to be included. The zero based budgets would
account for the new cost center to be developed the cost will be allocated to the cost center and
the cost driver will be provided. The budgets would be essential means for the understanding of
the project requirements for funds for the coming years. These might be increased for the
impact of the increase in the inflation rate and therefore, the cost driver will be updated for the
cost of the budget. The zero based budgeting method would also need to be undertaken for the
effective implementation the budgeting methods that will be accounted for.
Q4. The investment in the gold will be one of the method that the increase in the cost of rising
living might be saved. If the cost of the gold is falling then the need for the saving in the form of
gold might be worthless, however, if the gold might rise, the savings in the gold form might be
beneficial. Therefore, there would be essential need for the gold price to be rise and fall. In
accordance with it, the need for the investment would be the cost of the gold that will be
purchased. The cost of the gold must be taken into account if these have been given the
preference. The investment in the land might be beneficial and the property if the rate of these
have been rising. If there would not be any rise then there might be the need for them to be sold
to avoid the downside risk of the cost or the value being depreciated. As the dollars might be
depreciating against the currency so therefore there will be the need for them to be wisely used.
These strategy should enable to increase the cost of the living and thus there would be
substantial amount of the finance that be available for the funds being saved in the form of gold.
The investment mechanism might have been invested because of the need from the
investment. If someone would have the extra resources they might be able to save in the form
of gold. These could be risky because of the downside risk that is always there and then the
loss might be the result. The gold price might be rising or falling depending on the various
factors. The need for these might be the experts opinion in the market that they serve. Since the
inflation the cost of the living has been rising because of the food inflation in the world. This
might have been triggered by the need for the more resources for the funds to be made
available. There might be the need for the funds to be saved in the form of gold that would be
utilized if the rise has been risen. In some counties they might save the investment in the form
of gold. As the gold is more liquid than the land, the gold would be sold off when there would be
less requirement for the gold and the need for the cash to be readily converted. The government
might be using the gold to the foreign reserve polices for the effective implementation of their
policy. The government would be required for the need for the effective polices that have been
made to counter the moves. The government would be making the investment in the foreign
countries and these could include the substantial amount of the funs that would be required.
The need for the government to take into account the gold reserves that would be utilized during
the countries when they would need these to be resolved. The number of the factors that would
be taken into account for the government form of the investment that will be made.