(a)[2]
Calculate the expected total purchases and purchases returns for January 2021.
(b)[6]
Prepare the trade payables budget for January 2021. Present separately the payments made in the month of purchase and the payment made a month in arrears.
(c)[10]
Prepare a statement that reconciles the opening and closing actual trade payables figures for January 2021.
(d)[5]
Advise the directors on whether the business ought to stop using budgets or continue with them. Support your answer with reasons.
(e)[2]
Explain the meaning of the term ‘flexed budget’.