Business Studies Department, Course code : BAAC 3203

University of Technology & Applied Course Title : Management Accounting

Sciences(UTAS) Lecturer : Diana Fernandez
Ministry of Manpower, Semester: 1, 2020 - 2021

BAAC 2204- Management Accounting - 1

Outcomes for the Assignment: Outcome 3
Graduate Attributes Covered: Attribute Nos 1, 2, 3 and 5
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ASSIGNMENT

Student ID : Name: Section No:1

Issue Date: 08/12/2020 : Date of submission: (to be filled in by the student). Due Date: 20/12/2020

Question:
Imagine you are the finance manager of Al Mohsin company. The company management feels that the
cash management of the company should be made more effective. The following information from the
company’s records is available to you:

Miscellaneous
Month Sales Purchase Wages expenses
February 40,000 20,000 7,000 1,000
March 55,000 14,000 8,000 3,000
April 60,000 28,000 9,000 2,000
May 74,000 30,000 9,000 2,000
June 90,000 32,000 8,800 3,500

Additional Information

1. Al Mohsin LLC expects to have RO 8,000 cash balance at the beginning of April.
2. Period of credit allowed by suppliers – 2 months
3. 40% of the total sale is for cash. Half of the credit sale is collected in the next month of sale and
the remaining half in the following month after that.
4. Delay in payment of wages 1/4 month
5. Delay in payment of expenses 1/2 month
6. Income tax to be paid in the month of June RO 1,500.

You are required to :

a. Prepare an estimate of cash position for three months from April to June.
(8 marks)
b. Based on the budget prepared, evaluate the cash position of the company, give your comments
and provide suitable suggestion to the management on effective cash management.
(2 mark)
Total – 10 marks

Assignment/Home Work Page 1 of 2

Business Studies Department, Course code : BAAC 3203
University of Technology & Applied Course Title : Management Accounting
Sciences(UTAS) Lecturer : Diana Fernandez
Ministry of Manpower, Semester: 1, 2020 - 2021

Action taken for the Late Submission of the assignment:

Academic Integrity & Plagiarism Policy: The student should be ready to prove the authenticity of the work done.
If any forms of plagiarism/reproduction of answers are discovered, student will be asked to repeat the
assignment, if first offence; otherwise will be awarded zero marks.

To my Lecturer Dr/Mr/Mrs <<……………………………………………………>>

I certify that all of this work is done by me as in accordance with the Academic Integrity / Plagiarism policies

I am responsible for any violations with regard to this.

Students signature <<…………………………………………. >> Submission Date <<……………………………..>>

Assignment/Home Work Page 2 of 2