Medieval Adventures

ACG: 6065 Accounting Foundations Case 11-1 The knightly Adventures guild Submitted By- Case:11-1 The Medieval Adventures Company 1. The Medieval Adventures Company goes into negative bills in the calendar month of April. This is when the Company inevitably extra funds. July is the last month which shows a negative capita l flow i.e. negative 2500 $.

The partnership ineluctably to raise about 40,000 $ as the ending specie proportionality for the month of July is negative 40,000 $. The Company can take aim a short term loan for 40,000 $ which can be repaid in October. 2. Even though the Company started with a Capital of 250,000 $ it up to now ends up with a zero bank balance. This is because the ontogenesis in the collections of Accounts Receivable from customers is not sufficient to recover the wide disbursements (variable takings cost and the fixed cost). The disbursements are more than the accounts receivable from April onwards. This leads t o a negative exchange balance in April. Thi! s is the undercoat why the Medieval Company needed money in April. If the company had prepared a Profit Plan which include the cash budget at the beginning of the year itself, thence the event that money will run out by April could do been foreseen. Stricter rules for credit to the customers should have been made so that the customers fee the cash within 5-10 days. Also, they could have asked for credit for supplies instead of with child(p) cash. 3. The cash flow statements for the month of March, May and July match up with the cash budget prepared for question 1.If you want to get a full essay, order it on our website: BestEssayCheap.com

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