Managing Financial Principles and Techniques

MERIDIAN BUSINESS SCHOOL

MANAGING FINANCIAL PRINCIPLES

& TECHNIQUES

QCF Level 7

Student Name

RAMESH SIRAM

Student Enrol No

3191

Module lecturer:

ANDREW APPIAH

TASK 2

Boatline Ltd sells high quality chocolates that it buys in ready-made. Its main attraction to customers is that it gifts- wraps the items and delivers them to an address of the customer’s choice. The company has just expanded its product range to include beverage drinks.

You are the financial director and have been asked to prepare a cash budget for the next six months, incorporating the sales of the new products. You have been provided with the following table of estimated revenues and their relative costs. Other costs are also included in the notes below 2011.

| |JUL |AUG |SEP |OCT |NOV |DEC |

| |£ |£ |£ |£ |£ |£ |

|Sales |250,000 |266,000 |282,000 |306,000 |320,000 |330,000 |

|Purchases of chocolate drinks |125000 |133,000 |141,000 |153,000 |160,000 |165,000 |

|Administration Expenses |55,000 |60,000 |62,000 |65,000 |68,000 |70,000 |

|Packaging Costs |2,000 |3,000 |3,000 |3,000 |4,000 |4,000 |

|Miscellaneous Expenses |6,000 |6,000 |7,000 |7,000 |8,000 |8,000 |

|Loan Repayments |50,000 |0 |0 |0 |50,000 |0 |

Other Information:

1. Opening inventory of chocolates and drinks will amount to £250,000...