Description
Case study(1) Academic Year 2023-2024
Case study (1)
course
Financial Decision Making (MB 500)
Class instructor
Dr. Hossam Sharawi
Section
Accounting & Finance
27/07/2024
JIC
Exam`s Date
College
Student Name
ID
Number of Exam Pages
3 Pages
Instructor’s Signature
Dr. Hossam Sharawi
Reviewer’s Signature
Instructions:
1- Make sure that your exam sheet is 3 papers including the cover page.
2- Write your name and student ID number in the fields above.
3- Read the exam carefully and answer all the questions.
4- A calculator is allowed.
5- You are not permitted to share calculators or any other materials during the exam .
1st: Knowledge 40% (…Marks)
Question Number
Mark
CLOs
PLOs
1
4
1.1
K1
Q1
10
Total/K
Question Number
Total/s
Total
4
2nd: Skills 60 % (…Marks)
Mark
CLOs
PLOs
6
2.1
K2
10
6
3rd : values …% (…Marks)
Total/v
Total
Mark
1
The First question: Answer the following case study
10 Marks
A company is concerned about its cash flows, so it has requested the accountant to prepare a
cash budget for the three months ending on June 30, 2024. Below are the provided data:
Month
Jan
Feb
Mar
Sales
140,000
110,000
130,000
Purchases
80,000
96,000
86,000
Salaries
50,000
1. Sales are expected to increase by 15% each month, and purchases are expected to increase by
10% each month starting from April.
2. The company’s collection policy is to collect 25% in the same month of the sale, 45% in the
following month, and the remaining after two months from the sale date.
3. The payment policy for purchases is to pay 22% in the same month, 30% in the following
month, and the remaining after two months from the purchase date.
4. The company expects a 14% increase in salaries starting from February until May and a 5%
increase starting from June.
5. Rent is 150,000 annually, paid quarterly in January, April, July, and December of each year.
6. Dividend 25,000 SAR for 2022 will be paid in March 2024, with one-third in March 2024 and
the remainder in June 2024.
7. The company’s directors arranged a bank loan of 100,000 SAR, which will be added to the
company’s current account in July 2024.
8. The bank balance at the beginning of April 2024 is 80,000 SAR.
9. Cash sales represent 28% and credit purchases represent 27%.
Required: Prepare a cash budget for the company for the second quarter of 2024.
2
3
Case study (1)
course
Financial Decision Making (MB 500)
Class instructor
Dr. Hossam Sharawi
Section
Accounting & Finance
27/07/2024
JIC
Exam`s Date
College
Student Name
ID
Number of Exam Pages
3 Pages
Instructor’s Signature
Dr. Hossam Sharawi
Reviewer’s Signature
Instructions:
1- Make sure that your exam sheet is 3 papers including the cover page.
2- Write your name and student ID number in the fields above.
3- Read the exam carefully and answer all the questions.
4- A calculator is allowed.
5- You are not permitted to share calculators or any other materials during the exam .
1st: Knowledge 40% (…Marks)
Question Number
Mark
CLOs
PLOs
1
4
1.1
K1
Q1
10
Total/K
Question Number
Total/s
Total
4
2nd: Skills 60 % (…Marks)
Mark
CLOs
PLOs
6
2.1
K2
10
6
3rd : values …% (…Marks)
Total/v
Total
Mark
1
The First question: Answer the following case study
10 Marks
A company is concerned about its cash flows, so it has requested the accountant to prepare a
cash budget for the three months ending on June 30, 2024. Below are the provided data:
Month
Jan
Feb
Mar
Sales
140,000
110,000
130,000
Purchases
80,000
96,000
86,000
Salaries
50,000
1. Sales are expected to increase by 15% each month, and purchases are expected to increase by
10% each month starting from April.
2. The company’s collection policy is to collect 25% in the same month of the sale, 45% in the
following month, and the remaining after two months from the sale date.
3. The payment policy for purchases is to pay 22% in the same month, 30% in the following
month, and the remaining after two months from the purchase date.
4. The company expects a 14% increase in salaries starting from February until May and a 5%
increase starting from June.
5. Rent is 150,000 annually, paid quarterly in January, April, July, and December of each year.
6. Dividend 25,000 SAR for 2022 will be paid in March 2024, with one-third in March 2024 and
the remainder in June 2024.
7. The company’s directors arranged a bank loan of 100,000 SAR, which will be added to the
company’s current account in July 2024.
8. The bank balance at the beginning of April 2024 is 80,000 SAR.
9. Cash sales represent 28% and credit purchases represent 27%.
Required: Prepare a cash budget for the company for the second quarter of 2024.
2
3
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