Medieval Adventures

ACG: 6065 Accounting Foundations Case 11-1 The chivalric 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 capit al flow i.e. negative 2500 $.

The partnership take to raise about 40,000 $ as the ending specie residual for the month of July is negative 40,000 $. The Company can compensate 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 step-up in the collections of Accounts Receivable from customers is not sufficient to recover the inwardness disbursements (variable takings cost and the fixed cost). The disbursements are more than the accounts receivable from April onward s. This leads to a negative exchange balanc! e in April. This is the evidence 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, and then 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 open the cash within 5-10 days. Also, they could have asked for credit for supplies instead of braggy 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

If you want to get a full essay, visit our page: cheap essay