In: Accounting
1. Alpha Ltd has appointed you as a manager in the budgeting department. The company has provided the following information to prepare a cash flow budget for the six months from the 1 January 2021 to 30 June 2021.
1. Prepare a cash flow budget for the period 1 January 2021 to 30 June 2021 and indicate the closing balance as at 30 June 2021.
Answer:
We prepare below the revenue budget and then cash flow budget as required as below:
Insurance payment is made on 1st Dec 2020. Hence there will not be any cash outflow in the period Jan to Jun 2021 for Insurance payment.
Closing cash balance as at 30 June 2021 = £15,100
The above excel with 'show formula' is given below: