WK1 Cash Budget Flashcards
1
Q
Gross Profit
A
SR-Cost of sales
2
Q
E.g. Q: Sam plans to make a gross profit margin of 40% and in September, he hopes to make SR of £3000. What is his gross profit and cost of sales?
A
Gross profit = SR x 40% = 1,200
Cost of sales = SR x 60% = 1,800
3
Q
Cash budget - what is it?
A
Sets out all cash receipts and payments that a business expects to make over a period of time
