Purchasing and Financing 2024
Purchasing- and Financial Management For 2nd year CATS learners. Aligned to the outcomes of the German accredited certification: “Industrie Kaufmann/frau”.
Purchasing- and Financial Management
For 2nd year CATS learners.
Aligned to the outcomes of the German accredited certification: “Industrie Kaufmann/frau”.
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INDIVIDUAL ASSIGNMENT:<br />
A small company wants to budget for the first few months of its operation. The following<br />
conditions are given:<br />
o Cash purchase of a small truck (R100 000)<br />
o Labour (R10 000) per month<br />
o Monthly rental (R4 000)<br />
o Cash purchase of raw materials R9 000 per month<br />
o Expected sales R126 000 per month whereof<br />
o 1/3 cash<br />
o 1/3 at terms of one month<br />
o The rest at terms of two months.<br />
o The company took a loan of R180 000, which was paid out at the beginning of the<br />
first month, <strong>and</strong> has to be paid back as follows;<br />
o Instalment of R15 000 per month<br />
o Interest of R2 000 per month<br />
o First payment due on the 15 th of month 3.<br />
QUESTION<br />
Determine the total amount required to finance the first 6 months as well as the amount<br />
needed for each individual month.<br />
Month 1 2 3 4 5 6<br />
CASH INFLOW<br />
Cash Sales<br />
Credit. 1-month<br />
Credit. 2-months<br />
Loan<br />
Total Cash In<br />
CASH OUTFLOW<br />
Truck<br />
Labour<br />
Rental<br />
Material Cash<br />
Material Credit<br />
Interest<br />
Instalment<br />
Total Cash Outflow<br />
Previous Balance<br />
+ Inflow<br />
– Outflow<br />
= Balance<br />
31
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