Sleepy Hollow Cash Flow Forecast?

Can anyone help me get started on this. It doesnt tell you what Credit Terms are on the Beds. Does that mean they are all Cash Sales?

I have £5000, £5400, £5800, £6200 for Trade Sales. Where do I get the Factory Sales figures from?

Confused already:confused1:

Sorry meant £500,000, £540,000, £580,000 and £651,000 (those were my first workings)

Comments

  • mikes
    mikes Registered Posts: 254
    Hi Julie,

    I can't remember which memo it's on, but the credit terms for the beds are 40% after 1 month and 60% after 2 months. The factory sales is going to be £120 per bed in April.
  • jewels.p
    jewels.p Registered Posts: 1,774
    mikes wrote: »
    Hi Julie,

    I can't remember which memo it's on, but the credit terms for the beds are 40% after 1 month and 60% after 2 months. The factory sales is going to be £120 per bed in April.

    Thanks Mike I have found that now. That post was just a complete muck up just ignore it but I'll prob be back later asking more questions about this Assignment!:laugh:

    Thanks again

    Julie:001_smile:
  • mikes
    mikes Registered Posts: 254
    That's all right. I'm just waiting for the result of mine, let us know if you need any more help on this and i'll be glad to help.
  • jewels.p
    jewels.p Registered Posts: 1,774
    mikes wrote: »
    That's all right. I'm just waiting for the result of mine, let us know if you need any more help on this and i'll be glad to help.

    You'll wish you never said that!:laugh:
  • jewels.p
    jewels.p Registered Posts: 1,774
    Hiya Mike,

    I got Feb figures as follows:

    Total Receipts : £500,000

    Payments: Wood Suppliers - £260,000
    Production Wages - £25200
    Production Overheads - £90,000
    Sales Department Costs- £18,500
    Admin Costs - £25,000
    Overdraft Interest - 3618
    Total Payments = £422318

    Balance - £284118 (thats where I got £2841.18 as Overdraft Interest for March)

    Thanks for helping me with this.

    Julie:001_smile:
  • mikes
    mikes Registered Posts: 254
    i have similar answers apart from suppliers and wages. I have 170000 and 56000 respectively. I think i can see where we are both getting our answers from.

    For the suppliers, at the end of January production figure of 5200 beds, i then took into account the wood stocks, which get mentioned in the production memo at the end. I multiplied the number of beds by 10 meters of wood to get 52000 meters of wood and then used the opening and closing stock calculation to get the total number of materials to be used that month, as they wanted to reduce the number of wood to 30000 at the end of march and 20000 in April. I took the opening stock figure to be 40000 from the memo and closing stock of 22000, which was the closing stock of beds x10. This gave me a figure of 34,000 meters, i then timesed it by £5 to give me a total of £17,000.

    In my workings i did mention that 1 bed was equal to 10 meters of wood at £5 each which costs £50 a bed, but i did not use that in my workings, which you used to multiply by 5200 beds, so i think your figures maybe correct, as i thought the stock had to be taken into account and i was proberbly trying to make up figures that seemed ok.
  • mikes
    mikes Registered Posts: 254
    For the wages, i made this as being 2hrs per bed at £5 per hour to get £10 and then multiplyed that by 5600 beds for February.

    I'm not sure where about your answer. My apologies for that.

    Hope this will be of use, sorry i have confused you.
  • jewels.p
    jewels.p Registered Posts: 1,774
    Hi Mike,

    I see where I've gone wrong with the Wages but still cant get my head around the Production Figures. What did you get for the Opening and Closing Stock figures for Jan, Feb, March and April for Materials? That might help me understand a bit better. I am really struggling with this and getting more and more confused:confused1:

    Thanks again

    Julie
  • jewels.p
    jewels.p Registered Posts: 1,774
    jewels.p wrote: »
    Hi Mike,

    I see where I've gone wrong with the Wages but still cant get my head around the Production Figures. What did you get for the Opening and Closing Stock figures for Jan, Feb, March and April for Materials? That might help me understand a bit better. I am really struggling with this and getting more and more confused:confused1:

    Thanks again

    Julie

    My figures were:
    Jan Opening Stock - 40000 (from B.S)
    Closing Stock - 40000
    Feb Opening Stock - 40000
    Closing Stock - 40000
    March Opening Stock - 40000
    Closing Stock - 30000 (reduction as per memo)
    April Opening Stock - 30000
    Closing Stock - 20000 - to remain at this throughout the remainder of the year
  • mikes
    mikes Registered Posts: 254
    I put the opening number of materials for Jan as being 52000 (5200 beds x 10 meters of wood), then less opening stock 40,000 and add closing stock of 22,000 (jan closing stock for beds 2200 x 10), which equals 34000 meters. for the price i then timesed it by £5 to get £170000.

    Then for Feb, i had materials 56000, opening stock 22000 and closing stock of 24000 = 58000 and payment £290000. March, materials 60000, opening stock 24000, closing stock 30000 = 66000 and payment £330000.

    I didn't show workings for April, as that was being carried over, and actually i forgot to show it :blushing:. I didn't think about showing the closing stock as being 40000 again, which looks correct as they dont tell us what it should be, i just presumed that i had to work it out from the beds closing stock each month and then make the adjustments for march and april.

    Sorry if it's not helping much, but hopefully it wont be too long before i get the results back and then i can see.
  • jewels.p
    jewels.p Registered Posts: 1,774
    mikes wrote: »
    I put the opening number of materials for Jan as being 52000 (5200 beds x 10 meters of wood), then less opening stock 40,000 and add closing stock of 22,000 (jan closing stock for beds 2200 x 10), which equals 34000 meters. for the price i then timesed it by £5 to get £170000.

    Then for Feb, i had materials 56000, opening stock 22000 and closing stock of 24000 = 58000 and payment £290000. March, materials 60000, opening stock 24000, closing stock 30000 = 66000 and payment £330000.

    I didn't show workings for April, as that was being carried over, and actually i forgot to show it :blushing:. I didn't think about showing the closing stock as being 40000 again, which looks correct as they dont tell us what it should be, i just presumed that i had to work it out from the beds closing stock each month and then make the adjustments for march and april.

    Sorry if it's not helping much, but hopefully it wont be too long before i get the results back and then i can see.

    I put 40000 closing stock again as when he states that he is reducing it to 30000 then 20000 to remain for the rest of the year I thought that Closing stock was always at 40000 until the reduction (hope you understand the way I've written that.) That is only 1 TASK and I spent hours on it. I think I will need a week to do the Skills Test at this rate!:laugh:

    Thanks again and let me know how you got on when you get results back.

    Julie:001_smile:
  • mikes
    mikes Registered Posts: 254
    I forgot to mention at the time, for the overdraft interest, you round this up to the nearest pound.

    My wife just phoned me to say that my results have come back and i have a merit. There are a few points that i need to make a note of including a slight correction for the supplier figures, and on the other tasks. They say that i should have a go at doing the 3rd simulation. Ah well back to the drawing board.
  • jewels.p
    jewels.p Registered Posts: 1,774
    mikes wrote: »
    I forgot to mention at the time, for the overdraft interest, you round this up to the nearest pound.

    My wife just phoned me to say that my results have come back and i have a merit. There are a few points that i need to make a note of including a slight correction for the supplier figures, and on the other tasks. They say that i should have a go at doing the 3rd simulation. Ah well back to the drawing board.

    I am definitely expecting to have to do another simulation as well. It has taken me ages to do this one. I dont know how on earth I am going to have time to do it in the time given for the actual Skills Test. Not looking forward to this at all. I wanted to get Unit 15 out of the way so I could start on ECR but looks like it is going to take longer than I thought.:thumbdown:
  • mikes
    mikes Registered Posts: 254
    I've just looked at the answers and you are right for the suppliers amount for Feb and the opening and closing stock figures.
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