Cash management question

lana265 Registered Posts: 17 Dedicated contributor 🦉
Hi everyone,

I just cant seem to work out the answer to one of the practice questions from Computer Based Test 5.

Its task 1.5 part b.

I need to work out the total balance for trade payables for the end of march. I am given the forecast purchases and I have worked out the actual cash budget for the purchases. I am also told that there are no opening balances for payables.

Could someone please explain how I work this out??? I know it is going to be something really simple but I just cant seem to get the right answer.



  • Nps
    Nps Registered Posts: 782

    If you've completed the table then you're almost there. It's basically just asking you to carry on the calculation as though you had to complete the April and May columns too.

    It works out as the 40% left of the Feb purchases (due in Apr) and the whole 100% of the March purchases (the 60% due in Apr and the 40% due in May) for Mat1, plus the remaining 85% of the March Mat2 purchases (due in Apr) left to pay. Don't include the overtime costs which are outstanding as these are not Trade Payables. You should get 43440, 98000 and 105400, which add up to the answer.
  • lana265
    lana265 Registered Posts: 17 Dedicated contributor 🦉
    Thank you!!! I knew it was something simple but just couldnt seem to make the answer. Now it makes complete sense. Thanks again :001_smile:
  • mentorkeith
    mentorkeith Registered Posts: 74 Epic contributor 🐘
    Let Us Have A Main Folder Called Cash Management

    Hi Everyone

    Does anybody know how to set up a main folder in which to transfer ALL cash management threads? In the light of the difficulties students are having with Cash Management and ALL the many different threads that have been opened, it makes sense to lump them all into one place, so that same questions/answers are not repeated.

    If not, please use the search facility box (to the right of your "welcome" login and simply type "cash management". If you do this, you will find a big list of all threads related to cash management appear. Maybe the answer to your question will be found there. If not, then (instead of opening yet another thread, please ask your question within one of those existing threads. If we do so, it makes life easier for all of us who are trying to help.

  • Nps
    Nps Registered Posts: 782
    I agree about using the search function but I appreciate sometimes threads don't show up even if the question has been asked before. I often just post a link to the thread if I have already answered the same question elsewhere.

    But I disagree about asking a question on an existing thread. I think a new question should be started on a new thread rather than hijacking someone else's. Plus it makes it easier to see when a new question has been asked making it easier for those who want to help. Just my opinion.
  • Kelly7
    Kelly7 Registered Posts: 218 Beyond epic contributor 🧙‍♂️
    I think if you have a specific question you don't want to go looking through pages in case someone else has asked the same question. I would say to continue to ask away, that is the point of the forum isn't it really to get help with things.
  • Nps
    Nps Registered Posts: 782
    And even if a question has been asked and answered before, asking it again is not a problem as someone else may phrase the answer differently, or have a different way of working it out which makes more sense to the poster.
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