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Question Related to budgeting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Question Related to budgeting

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • July 18, 2021 at 3:23 pm #628193
    chetan1998
    Participant
    • Topics: 4
    • Replies: 9
    • ☆

    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 16,000

    Current liabilities
    Trade payables 2,000
    18,000

    Budgeted 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/a

    Equity and liabilities
    Ordinary shareholders funds 19,500

    Current liabilities
    Trade payables n/a

    Budgeted 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). 3,500

    Cash budget for the quarter ending 31 December 20X5
    $
    Receipts from customers 23,000
    Payments
    Materials 12,000
    Wages 6,000
    Net cash inflow 5,000

    What 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?
    will the NCA be $8500
    receivable $5000
    cash $ 6000
    payables $4000 ?

    July 18, 2021 at 3:45 pm #628206
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Yes, all four seem to be correct 🙂

    July 18, 2021 at 3:48 pm #628208
    chetan1998
    Participant
    • Topics: 4
    • Replies: 9
    • ☆

    Thank you so much sir for your confirmation.
    I have to give my f2 exam tomorrow.

    July 18, 2021 at 4:15 pm #628213
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    You are welcome, and I hope all goes well for you tomorrow 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Question Related to budgeting’ is closed to new replies.

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