CHAPTER 9 Budgeting 419Bruce plans to pay his supplier 50 per cent in the month of purchase, and 50 per cent in the
following month. A 6 per cent discount is granted on payments made in the month of purchase.
However, Bruce will not be able to take any discounts on September purchases because of cash
flow constraints. All September purchases will be paid for in October.
Bruce has 50 clocks on hand (purchased in August and to be paid for in September), and plans
to maintain enough end-of-month inventory to meet 70 per cent of the next month’s sales.
Required
Prepare schedules for monthly budgeted cash receipts and cash disbursements for this venture.
During which months will Bruce need to finance purchases?References
‘ABC Shops to be closed, jobs to go as retailer moves online’ 2015, ABC News, 23 July, http://www.abc.net.au/news/2015-07-23/
abc-shops-to-be-phased-out-and-closed/6641476.
Simons, R 2000, Performance measurement & control systems for implementing strategy, 1st edn, Prentice Hall, p. 81.
Whalley, J 2014, ‘Profit of $4 billion but not gain for staff’, Herald Sun, 22 August, http://www.heraldsun.com.au/business/
telstra-deals-blow-by-trimming-staff-payouts-despite-profit/story-fni0dcne-1227033753557.
Yeates, C 2015, ‘Westpac moving away from sales targets for staff’, Sydney Morning Herald, 28 August, http://www.smh.com.au/
business/workplace-relations/westpac-moving-away-from-sales-targets-for-staff-20150828-gja50b.html#ixzz3kLd4VCy7.
Acknowledgements
Reality check: ABC Shops to be closed: jobs to go as retailer moves online: © ABC News.
Photo: © Andrey_Popov / Shutterstock.com.
Photo: © wavebreakmedia / Shutterstock.com.