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Blitzen Co manufactures and sells a single product. It is preparing budgets for the three-month period ending 31 December 20X5. The budget is virtually complete and the remaining task is to prepare the budgeted statement of financial position as at 31 December 20X5. Sales of the product and purchases of materials are all made on credit terms. There were no purchases or disposals of non-current assets in the period to 31 December 20X5. Entries marked ‘n/a’ are yet to be calculated. The following data is available:
Statement of financial position at 30 September 20X5
Assets $ $
Non-current assets (net). 10,000
Current assets
Raw material inventory 4,000
Trade receivables 3,000
Cash 1,000
8,000
18,000
Equity and liabilities
Ordinary shareholders funds 16,000Current liabilities
Trade payables 2,000
18,000Budgeted statement of financial position at 31 December 20X5
Assets $ $
Non-current assets (net). n/a
Current assets
Raw material inventory 4,500
Trade receivables n/a
Cash n/aEquity and liabilities
Ordinary shareholders funds 19,500Current liabilities
Trade payables n/aBudgeted statement of profit or loss for the quarter ending 31 December 20X5
$
Sales 25,000
Direct materials 14,000
Direct wages 6,000
Depreciation 1,500
Net profit/(loss). 3,500Cash budget for the quarter ending 31 December 20X5
$
Receipts from customers 23,000
Payments
Materials 12,000
Wages 6,000
Net cash inflow 5,000What figure should be included in the budgeted statement of financial position as at 31 December 20X5 for each of the following items?
Non-current assets. $____________
Receivables. $____________
Cash. $____________
Payables. $____________can you assist me, sir, please?
it’s confusing, In the above question net cash inflow is cash?
payable is paid for material n wages?The net cash inflow is the net cash received – the receipts from customers of 23,000, less the payments for materials and wages of 18,000.
The payables is the amount still owing for materials (they bought 14,000 but have only paid cash of 12,000).
Cash is 5000 in december 20×5.
Payable is 2000 we have to pay.And depreciation is 1500 is non current asset. ?
Can you assist me in receivable payment
during the period, we received 23,000
we had 3000 openings then we sold goods for 25000 on credit, and received 23000 = 5,000 receivable . is it correct sir?Unless you have been set this as a test question (and we certainly do not provide answers to test questions 🙂 ) then you must have an answer in the same book in which you found the question.
Please ask about whatever it is in the printed answer that you are not clear about and then I will explain.The cash is what it was at the end of last year, plus the net cash received this year,
Your figure for receivables is correct 🙂
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