Exercise 17.

1 Budgeted Cash Flow Statement - Top Hats

Calculatio
n

Budgeted GST paid $

TOP HATS

Budgeted Cash Flow Statement for July 2026

$ $
CASH FLOWS FOR OPERATIONS

Net Cash Flows from Operations

CASH FLOWS FROM INVESTING ACTIVITIES

Net Cash Flows from Investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

© Simmons & Hardy 1 Cambridge University Press, 2019

Net Cash Flows from Financing activities

b (continued)

TOP HATS

Budgeted Cash Flow Statement for July 2026

$ $

Net Increase (Decrease) in cash position

Bank Balance at start
Bank Balance at end

Action 1

Action 2

TOP HATS
Budgeted Cash Flow Statement (extract) for July 2026

Cash sales: $15 000 Credit sales: $10 000

$ $ $ $
CASH FLOWS FROM OPERATIONS

© Simmons & Hardy 2 Cambridge University Press, 2019

Net Cash Flows from Operations

e
Explanation

© Simmons & Hardy 3 Cambridge University Press, 2019

Exercise 17.2 Budgeted Cash Flow Statement: consecutive periods -
Lockhardt Locks

January 2026

Calculatio
n

Budgeted GST paid $

February 2026

Calculatio
n

Budgeted GST paid $

March 2026

Calculatio
n

Budgeted GST paid $

b See next page

Action 1

Action 2

© Simmons & Hardy 4 Cambridge University Press, 2019

© Simmons & Hardy 5 Cambridge University Press, 2019
d
Explanation

LOCKHARDT LOCKS
Budgeted Cash Flow Statement for January – March 2026
January February March
CASH FLOWS FOR OPERATIONS

Net Cash Flows from Operations

CASH FLOWS FROM INVESTING ACTIVITIES

Net Cash Flows from Investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Net Cash Flows from Financing activities

© Simmons & Hardy 6 Cambridge University Press, 2019

Net Increase (Decrease) in cash position

b (continued)
LOCKHARDT LOCKS
Budgeted Cash Flow Statement for January – March 2026

January February March

Bank Balance at start
Bank Balance at end

© Simmons & Hardy 7 Cambridge University Press, 2019

Exercise 17.3 Schedule of Receipts from Accounts Receivable - Bats ‘n’
Balls

Reason

Credit sales October November December

Month
(incl.GST) 2026 2026 2026
August
September
October
November
December
Budgeted Receipts from
Accounts Receivable

Explanation

Explanation

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Exercise 17.4 Schedule of Receipts from Accounts Receivable - Jazzy
Jackets

Credit sales April May June

Month
(incl.GST) 2026 2026 2026

Budgeted Receipts from

Accounts Receivable

JAZZY JACKETS
Budgeted Cash Flow Statement (extract) for April – June 2026

April May June

CASH FLOWS FOR OPERATIONS

Total Operating inflows

Explanation

© Simmons & Hardy 9 Cambridge University Press, 2019

Exercise 17.5 Schedules and the Budgeted Cash Flow Statement - Betty’s
Bags

Credit sales January February March

Month
(incl.GST) 2026 2026 2026

Budgeted Receipts from

Accounts Receivable

Credit sales January February March

Month
(incl.GST) 2026 2026 2026

Budgeted Receipts to
Accounts Payable

© Simmons & Hardy 10 Cambridge University Press, 2019

c

BETTY'S BAGS

Budgeted Cash Flow Statement (extract) for January – March 2026

January May June

CASH FLOWS FOR OPERATIONS

Net Cash Flows from Operations

d
Explanation

Explanation

© Simmons & Hardy 11 Cambridge University Press, 2019

f

BETTY'S BAGS
Budgeted Cash Flow Statement (extract) for July 2026

Wages: 10% of Sales Wages: 20% of Sales

$ $ $ $
CASH FLOWS FROM OPERATIONS

Net Cash Flows from Operations

Explanation

© Simmons & Hardy 12 Cambridge University Press, 2019

Exercise 17.6 Budgeted reports - Dana’s Detergents

DANA’S DETERGENTS
Budgeted Cash Flow Statement for May 2026

$ $
CASH FLOWS FOR OPERATIONS

Net Cash Flows from Operations

CASH FLOWS FROM INVESTING ACTIVITIES

Net Cash Flows from Investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Net Cash Flows from Financing activities

Net Increase (Decrease) in cash position

Bank Balance at start
Bank Balance at end

© Simmons & Hardy 13 Cambridge University Press, 2019

b
DANA’S DETERGENTS
Budgeted Income Statement for May 2026

$ $
Revenue

Less Cost of Goods Sold

Gross Profit

Adjusted Gross Profit

Less Other expenses

Net Profit

Reason1

Reason2

© Simmons & Hardy 14 Cambridge University Press, 2019

d
General Ledger
Inventory

Date Cross-reference Amount $ Date Cross-reference Amount $

GST Clearing

Date Cross-reference Amount $ Date Cross-reference Amount $

DANA’S DETERGENTS
Budgeted Balance Sheet as at 31 May 2026

$ $ $ $
Current Assets Current Liabilities

Non-Current Liabilities

© Simmons & Hardy 15 Cambridge University Press, 2019

e (continued)
DANA’S DETERGENTS
Budgeted Balance Sheet as at 31 May 2026

$ $ $ $

Non-Current Assets Owner’s equity

Total Assets Total Equities

DANA’S DETERGENTS
Budgeted Income Statement for May 2026

Sales: 100% mark-up Sales: 150% mark-up

$ $ $ $
Revenue

Less Cost of Goods Sold

Gross Profit

Adjusted Gross Profit

Less Other expenses

© Simmons & Hardy 16 Cambridge University Press, 2019

Net Profit

Explanation

© Simmons & Hardy 17 Cambridge University Press, 2019

Exercise 17.7 Budgeted reports - Jacuzzi Joint

Calculatio
n

Budgeted Receipts from Accounts Receivable $

Calculatio
n

Budgeted Payments to Accounts Payable $

© Simmons & Hardy 18 Cambridge University Press, 2019

c

JACUZZI JOINT

Budgeted Cash Flow Statement for July 2026

$ $
CASH FLOWS FOR OPERATIONS

Net Cash Flows from Operations

CASH FLOWS FROM INVESTING ACTIVITIES

Net Cash Flows from Investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Net Cash Flows from Financing activities

Net Increase (Decrease) in cash position
Bank Balance at start
Bank Balance at end

© Simmons & Hardy 19 Cambridge University Press, 2019

d
Calculatio
n

Budgeted Bad debts expense $

JACUZZI JOINT

Budgeted Income Statement for July 2026

$ $
Revenue

Less Cost of Goods Sold

Gross Profit

Adjusted Gross Profit

Add Other revenue

Less Other expenses

© Simmons & Hardy 20 Cambridge University Press, 2019

 Net Profit

Reason1

Reason2

General Ledger
Inventory

Date Cross-reference Amount $ Date Cross-reference Amount $

GST Clearing

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 21 Cambridge University Press, 2019

© Simmons & Hardy 22 Cambridge University Press, 2019
h
JACUZZI JOINT
Budgeted Balance Sheet as at 31 May 2026

$ $ $ $
Current Assets Current Liabilities

Non-Current Liabilities

Non-Current Assets Owner’s equity

Total Assets Total Equities

© Simmons & Hardy 23 Cambridge University Press, 2019

Exercise 17.8 Account reconstruction - Moving Boxes

Item Budgeted Report

Accounts Receivable balance – 1 July 2025
Accounts Receivable balance – 30 June 2026
Credit sales
Discount expense

General Ledger
Accounts Receivable

Date Cross-reference Amount $ Date Cross-reference Amount $

Budgeted Receipts from Accounts Receivable $

Explanation

© Simmons & Hardy 24 Cambridge University Press, 2019

Exercise 17.9 Account reconstruction - Bully Hides

General Ledger
Accounts Receivable

Date Cross-reference Amount $ Date Cross-reference Amount $

Budgeted Receipts from Accounts Receivable $

BULLY HIDES

Budgeted Cash Flow Statement (extract) for 2026

$ $
CASH FLOWS FROM OPERATIONS

© Simmons & Hardy 25 Cambridge University Press, 2019

c
General Ledger

Accounts Payable

Date Cross-reference Amount $ Date Cross-reference Amount $

Budgeted Receipts to Accounts Payable $

© Simmons & Hardy 26 Cambridge University Press, 2019

Exercise 17.10 Account reconstruction - Tony’s Tyre Emporium

General Ledger
Inventory

Date Cross-reference Amount $ Date Cross-reference Amount $

Budgeted credit purchases $

General Ledger
Accounts Payable

Date Cross-reference Amount $ Date Cross-reference Amount $

Budgeted Payments to Accounts Payable $

© Simmons & Hardy 27 Cambridge University Press, 2019

Exercise 17.11 Cash Flow Statement Variance Report - Simply Stunning
a

Explanation

SIMPLY STUNNING
Cash Flow Statement Variance Report for the year ended 30 June 2026

Budgeted Actual Variance Fav./Unfav.

CASH FLOWS FOR OPERATIONS

Net Cash Flows from Operations

CASH FLOWS FROM INVESTING
ACTIVITIES

Net Cash Flows from Investing activities

CASH FLOWS FROM FINANCING
ACTIVITIES

© Simmons & Hardy 28 Cambridge University Press, 2019

 Net Cash Flows from Financing activities
Net Increase (Decrease) in cash position
Bank Balance at start
Bank Balance at end

Favourable / Unfavourable
Justification

Reason

Explanation

Assessment

© Simmons & Hardy 29 Cambridge University Press, 2019

g

Asset 1
Justification
Asset 2
Justification

© Simmons & Hardy 30 Cambridge University Press, 2019

Exercise 17.12 Cash Flow Statement Variance Report - Bright Lights

Calculatio
n

Actual rent paid $

BRIGHT LIGHTS
Cash Flow Statement Variance Report (extract) for the year ended 30 June 2026

Budgeted Actual Variance Fav./Unfav.

Operating Activities

Investing Activities

Financing Activities

Explanation

d
© Simmons & Hardy 31 Cambridge University Press, 2019
Reason

Explanation

© Simmons & Hardy 32 Cambridge University Press, 2019

Exercise 17.13 Income Statement Variance Report - Toot and Twang

Explanation

TOOT AND TWANG

Income Statement Variance Report (extract) for the year ended 30 June 2026

Budgeted Actual Variance Fav./Unfav.

Revenue

Less Cost of Goods Sold

Gross Profit

Adjusted Gross Profit

Add Other revenue

Less Other expenses

Net Profit (Loss)

© Simmons & Hardy 33 Cambridge University Press, 2019

c

Explanation

Reason

Explanation

© Simmons & Hardy 34 Cambridge University Press, 2019

Exercise 17.14 Income Statement Variance Report - Blades

a
BLADES
Income Statement Variance Report (extract) for the year ended 30 June 2026

Budgeted Actual Variance Fav./Unfav.

Revenue

Net Sales
Less Cost of Goods Sold

Gross Profit

Adjusted Gross Profit

Less Other expenses

Net Profit (Loss)

Reason1
Reason2

Reason

© Simmons & Hardy 35 Cambridge University Press, 2019

d

Explanation

Assessment

© Simmons & Hardy 36 Cambridge University Press, 2019

Exercise 17.15 Account reconstruction and budgeted reports - Bayes
Surfboards

Calculatio
n

Budgeted proceeds on disposal of shop fittings $

Calculatio
n

Budgeted Receipts from Accounts Receivable $

Calculatio
n

Budgeted Payments to Accounts Payable $

Calculatio
n

© Simmons & Hardy 37 Cambridge University Press, 2019

 Budgeted GST paid $

BAYES SURFBOARDS

Budgeted Cash Flow Statement for 2026

$ $
CASH FLOWS FOR OPERATIONS

Net Cash Flows from Operations

CASH FLOWS FROM INVESTING ACTIVITIES

Net Cash Flows from Investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Net Cash Flows from Financing activities

Net Increase (Decrease) in cash position
Bank Balance at start
Bank Balance at end

Explanation

© Simmons & Hardy 38 Cambridge University Press, 2019

g

General Ledger
Inventory

Date Cross-reference Amount $ Date Cross-reference Amount $

GST Clearing

Date Cross-reference Amount $ Date Cross-reference Amount $

© Simmons & Hardy 39 Cambridge University Press, 2019

h

BAYES SURFBOARDS

Budgeted Balance Sheet (extract) as at 31 December 2026

$ $
Current Assets Current Liabilities

Total Current Assets Total Current Liabilities

Explanation

© Simmons & Hardy 40 Cambridge University Press, 2019

Exercise 17.16 Account reconstruction and budgeted reports - Digital
Masters

Calculatio
n

Budgeted Photocopier rent expense $

Calculatio
n

Budgeted Interest revenue $

Calculatio
n

Budgeted Bad debts expense $

© Simmons & Hardy 41 Cambridge University Press, 2019

© Simmons & Hardy 42 Cambridge University Press, 2019
d

DIGITAL MASTERS
Budgeted Income Statement for the year ended 30 June 2026

$ $
Revenue

Less Cost of Goods Sold

Gross Profit

Adjusted Gross Profit

Add Other revenue

Less Other expenses

Net Profit (Loss)

Explanation

© Simmons & Hardy 43 Cambridge University Press, 2019

f

DIGITAL MASTERS
Budgeted Balance Sheet (extract) as at 30 June 2026

$ $
Current Assets

Non Current Assets

Total Assets

DIGITAL MASTERS
Budgeted Income Statement for the year ended 30 June 2026

$ $
Revenue

Less Cost of Goods Sold

© Simmons & Hardy 44 Cambridge University Press, 2019

Gross Profit

© Simmons & Hardy 45 Cambridge University Press, 2019

Adjusted Gross Profit
Add Other revenue

Less Other expenses

Net Profit (Loss)

© Simmons & Hardy 46 Cambridge University Press, 2019