Study the cash flow forecast below and fill in the figures represented by the letters A, B, C, D and E - Leaving Cert Business - Question 5 - 2018
Question 5
Study the cash flow forecast below and fill in the figures represented by the letters A, B, C, D and E.
Cash flow forecast for Intenso Ltd, for the 3rd quarter of 2... show full transcript
Worked Solution & Example Answer:Study the cash flow forecast below and fill in the figures represented by the letters A, B, C, D and E - Leaving Cert Business - Question 5 - 2018
Step 1
A: Total Receipts for August
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Answer
To find value A (Total Receipts for August), we can use the formula for Total Receipts:
Total Receipts = Opening Cash + Net Cash - Total Payments.
For August, we can rearrange the formula to find A:
A = Total Cash - Opening Cash - Net Cash + Total Payments.
Given total cash for August is unknown, we can sum the known values for previous months, which leads us to determine A as 25,000.
Step 2
B: Net Cash for September
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Answer
Net Cash for September can be calculated by subtracting Total Payments from Total Receipts.
Net Cash (September) = Total Receipts (September) - Total Payments (September).
Given values indicate that Net Cash B = (3,000).
Step 3
C: Total Cash for September
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Total Cash can also be viewed as the sum of Opening Cash and Net Cash for the month.
Therefore, C = Opening Cash (September) + Net Cash (September) = 19,000 + B = 11,000.
Step 4
D: Opening Cash for September
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Opening Cash for September can be derived from the Closing Cash of August.
Thus, D = 5,000.
Step 5
E: Closing Cash for September
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Answer
Closing Cash will be the sum of Opening Cash and Net Cash for September, providing us with value E:
E = 16,000.
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