INDIVIDUAL ASSIGNMENT

FINANCIAL FORECASTING AND PLANNING (CASH BUDGET)

PREPARED BY

ALIF DANIEL BIN AMINURRASHID

ID NUMBER

2023858348

GROUP

KBA273/1B

PREPARED FOR

MISS NOOR SYAHIRAH BINTI ZAKARIA

DATE

21ST DECEMBER 2023

 TABLE OF CONTENT

1.0 QUESTION 1 Based on your analysis, briefly describe the outlook for
this company over the next 6 months. Discuss its specific
obligations and the funds available to meet them.
2.0 QUESTION 2 Based on your analysis, briefly describe the outlook for
this company over the next 6 months. Discuss its specific
obligations and the funds available to meet them.
APPENDIX Helen’s Company

Dayton Bhd
1.0 QUESTION 1
c) Based on your analysis, briefly describe the outlook for this company over the next 6
months. Discuss its specific obligations and the funds available to meet them.

i. What could the firm do in the case of a cash deficit?

 Helen's company may consider negotiating better terms with suppliers, such as
extended payment terms or discounts for large purchases, in order to address short-
term liquidity limitations. The cash budget analysis reveals that increased spending,
especially in the miscellaneous, advertising, and R&D categories, caused Helen's
Company to have cash shortages in August, September, and November.

ii. What should the firm do if it has a cash surplus?


2.0 QUESTION 2
c) Based on your analysis, briefly describe the outlook for this company over the next 6
months. Discuss its specific obligations and the funds available to meet them.

i. What could the firm do in the case of a cash deficit?

 August, September, and December need to be improved in light of the current
circumstances. Dayton Bhd must raise revenue or cut expenses in order to improve
this. For instance, monitoring monthly income and expenses will prevent the business
from experiencing a financial deficit.

ii. What should the firm do if it has a cash surplus?

 October, November, and July all show a cash surplus. For the sake of the company's
prospects, revenue must be increased. Planning should be Dayton Bhd's first priority.
Planning the budget enables management to assess and focus on the future.
APPENDIX
Helen’s Company
Dayton Bhd

CALCULATION

1. Cash Sale

July RM170000 X 20% = RM34000 4. Purchases Payment by Cash (10%)

August RM160000 X 20% = RM32000
September RM140000 X 20% = RM28000 June RM 150000 X 10% = RM 15000
October RM180000 X 20% = RM36000 July RM 140000 X 10% = RM 14000
November RM200000 X 20% = RM40000 August RM 100000 X 10% = RM 10000
December RM250000 X 20% = RM50000 September RM 80000 X 10% = RM 8000
October RM 110000 X 10% = RM 11000
November RM 100000 X 10% = RM 10000
2. Credit Sales (40% 1 month following )
December RM 90000 X 10% = RM 9000
July RM 250000 X 40% = RM 100000
August RM 170000 X 40% = RM 68000
5. 1 month on following month (50%)
September RM 160000 X 40% = RM 64000
October RM 140000 X 40% = RM 56000 July RM 150000 X 50% = RM 75000
November RM 180000 X 40% = RM 72000 August RM 140000 X 50% = RM 70000
December RM 200000 X 40% = RM 80000 September RM 100000 X 50% = RM 50000
October RM 80000 X 50% = RM 40000
November RM 110000 X 50% = RM 55000
3.Credit Sales (40% 2 month following )
December RM 100000 X 50% = RM 50000
July RM 210000 X 40% = RM 84000
August RM 250000 X 40% = RM 100000
September RM 170000 X 40% = RM 68000
October RM 160000 X 40% = RM 64000
November RM 140000 X 40% = RM 56000
December RM 180000 X 40% = RM 72000
 6. 2 month on following month (40%)

July RM 120000 X 40% = RM 48000

August RM 150000 X 40% = RM 60000
September RM 140000 X 40% = RM 56000
October RM 100000 X 40% = RM 40000
November RM 80000 X 40% = RM 32000
December RM 110000 X 40% = RM 44000
7. Interest Payment (10% of sale)
5. Wages and Salaries September RM 140000 X 10% = RM 14000
July RM 250000 X 20% = RMDecember
50000 RM 250000 X 10% = RM 25000
August RM 170000 X 20% = RM 34000
September RM 160000 X 20% = RM 32000
October RM 140000 X 20% = RM 28000
November RM 180000 X 20% = RM 36000
December RM 200000 X 20% = RM 40000

6. Rents (12% of sales)

July RM 170000 X 12% = RM 20400

August RM 160000 X 12% = RM 19200
September RM 140000 X 12% = RM 16800
October RM 180000 X 12% = RM 21600
November RM 200000 X 12% = RM 24000
December RM 250000 X 12% = RM 30000
 8. Net Cash Flow ( Total Receipt - Total Disbursment )

July RM 218000 - RM 207400 = RM 10600

August RM 200000 - RM 218200 = (RM 18200)
September RM 175000 - RM 196800 = (RM 21800)
October RM 183000 - RM 140600 = RM 424000
November RM 183000 - RM 157000 = RM 26000
December RM 214000 - RM 333000 = RM (119000)

9. Beginning Cash Balance

July RM22,000
August RM10600 + RM 22000 = RM 32600
September (RM 18200) + RM 32600 = -RM 14400
October (RM 21800) + -RM 14400 = -RM (7400)
November RM 42400 + (RM 7400)= -RM 35000
December RM 26000 + RM 35000 = RM 61000

10. Ending Cash balance (ECB)

July RM 10600 + RM 22000 = RM 32600

August RM (RM 18200) + RM 32600 = -RM 14400
September (RM 21800) + -RM 14400 = -RM (7400)
October RM 42400 + (RM 7400)= -RM 35000
November RM 26000 + RM 35000 = RM 61000
December (RM119000) + RM 61000 = (RM58000)