Question

Consider the supplied cost–benefit analysis.

1. Complete the cash flows in the table.
2. Considering the effect on cash flow, is the analysis worthwhile? 30–50 words

QRS Co. Motor vehicle expense account Cost–benefit analysis using Budget versus Actual Variance Reporting October 20XX
Month	Existing Estimate	Change to	Effect on:
			Income	Expenses	Cash Flow
July	$700
Aug	$750
Sept	$800
Oct	$900
Nov	$950	$830
Dec	$800	$680
Jan	$800	$680
Feb	$800	$680
Mar	$800	$680
Apr	$800	$680
May	$800	$680
June	$800	$680
Total	$9,700	$5,590

Answer 1

Answed 9. Completion of Costb Flowes QRS Co. Cost -Benefit Analysis using Bydget Versus Actyal variynce Reporting octo ber 20 XX Effect on Exi sting Estimgte Change to Month Cash Flow Expenses Income Jyly 700 750 Aug Sept 800 Oct go 120 - 20 Nov 950 830 120 120 Dec 680 80 120 |10 Jan 800 680 800 120 089 680 Feb T20 80 120 120 Mav Apr 680 120 120 800 May 680 - 120 120 800 630 - 120 June 800 120 5530 - 960 960 9700 Totg 1 the companys expenses are redyced by $ 120 per month till the jeny end to Tyne. Such velucton in the expenseo legts to an increment in the cash flous by $ 120 per month . The oveval) an91jsis shows company ha5 90 19 Cvemenk in cash flows ; + 960 gnd rduction in the fram November expenses y $ 960.

6. Consideriog , Yes, It is warthuhile for tehe company. is the analysis worthwhile ? the effect on Cash flow cash position quvible to Becquse, such qmalysis proviles a the Company in the neaw fiybyve. Company. can invest such symplys Csh in a good plan to earn qo profitable income opportunity. A Compant will glso get a varous investment plans to nvest such excess plag. It will be a protitable opportun) by to the company.