(a(i))[1]
State one distinction between a cash budget and a statement of cash flows.
(a(ii))[2]
State two advantages of preparing a cash budget.
(b(i))[3]
Calculate the sales value for each of the three months January to March 2017.
(b(ii))[3]
Calculate the cash discount value for each of the three months January to March 2017.
(b(iii))[1]
Calculate the cash discount rate given.
(c)[8]
Prepare the trade receivables budget for each of the three months January to March 2017. Trade receivables on 1 January 2017 are forecast to be $40000.
(d)[5]
Calculate the required increase in February’s sales, after the advertising campaign, needed to prevent the negative cash balance.
(e)[2]
Suggest two alternative actions the directors could take, other than the advertising campaign, to improve cash flow.