Master Bidget

Foundation Degree in Accounting & Finance Subject: pecuniary Planning Tutor:Linda Jordon Title of work: notes Budget for Stoddard Ltd create:Daisy So Cash Budget for Stoddard Ltd for six months to 1 November 2001 JunJulAugSepOctNov £ £ £ £ £ £ Cash inflows Credit Sales735087501015011550 Cash Sales3150 37504350 4950 6000 6000 3150375011700137001615017550 Cash Outflows Freehold piazza60000 Equipment800020000 Vehicle4000 Purchases3437510875123751387516500 Wages & Salaries meter10001000100010001000 Overheads400400400400800800 relegation to salesmen5256257258251000734003630012900145001650039300 Cash flow(70250)(32550)(1200)(800)(350)(21750) Opening Balance800009750(22800)(24000)(24800)(25150) final stage Balance9750(22800)(24000)(24800)(25150)(46900) Financial Position of Stoddard Ltd Based on the specie budget which I prepared on previous page, we gouge see Stoddard Ltd is having problem with their cash situation.

It is mainly due to the dour credit terms for their debtors, overstocking and the initial cash payment for the freehold property and equipment. The management should use the economic order quantity (EOQ) manner to carry out their stock control. Other method actings such as just-in-time and optimised work technology are also available scarce since Stoddard is worry about the interruption towards the end of the accounting year, just-in-time method is not the silk hat solution to this situation. On the other hand, optimised production technology is more suitable for production companies, this is not the best solution for Stoddard. Since we do not have any development on the cost of placing one order and the cost of storage, it is elusive to calculate the actual figure of the EOQ. I would suggest the management of Stoddard to reduce their credit terms to... If you want to get a full essay, order it on our website: Orderessay

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