# Prepare a cash forecast

1. Prepare a cash forecast considering the following:

Direct sales paid 30 days

Sales to distributors 50% cash, 25% after 30 days, 25% after 60 days.

Local suppliers paid 60 days, import suppliers paid 30 days.

Personnel cost (Direct personnel cost + Indirect personnel cost +Sales department + Administration) and taxes, are paid at the end of the month.

Commissions from sales agent (5%) are paid after receiving full amount from the customers (Direct customers and distributors).

Starting cash January 1st is 5.000€

At the end of December, the company has a loan of 20.000€. The company pays interest every month, based on an annual interest of 6%, (0.5% per month), calculated in base of the loan balance of the previous month.

Their credit facility has a maximum amount of 300.000€

The company wants to hold a minimum cash balance of 20.000€

Prepare a cash planning.

The company issued Bonds 5 years ago, and they have to pay 500.000€ by June 30th.

Will they be able to pay in time?

What is the final cash balance by June 30th.?

(65 points)

2.

You are requested to find deviations between actual and budget for all income statement accounts.

Show deviations in % over budget.(5 points)

Show all Income statement lines as  percentage of Sales.(5 points)

Explain the deviation in sales, and split it between volume variance and price variance.(15 points)

Show income statement per unit for both Budget and actual. (5 points)

Give an explanation for the deviations of the company.(5 points).