Projector Limited has the following projection for the 4 months ending August 2018: May June July August R’s R’s R’s Sales 320 000 380 000 420 000 460 000 Purchases 160 000 160 000 230 000 250 000 Rent income 11 000 11 000 ? ? Salaries 26 800 26 800 ? ? 1. 50% of the sales are for cash and the balance is on credit. 2. All credit sales are collected one month after the sale. 3. All purchases are on credit. Creditors are paid in full one month after the month of purchase. 4. The tenants rent contract stipulates an increase of 20% from 1 July 2018. 5. Salaries are expected to increase to R32 000 per month as at 1 August 2018. 6. A new motor vehicle will be purchased during June 2017. Repayments of R6 000 per month will commence on 1 July 2017. 7. Advertising costs are expected to be 2% of sales from 1 June 2018. 8. A fixed deposit of R25 000 will mature in the month of July 2018. 9. On 31 May 2018, the bank is expected to have a favourable balance of R420 000. Required: Prepare a Cash Budget for the three (3) months ending August 2018.
Projector Limited has the following projection for the 4 months ending August 2018:
May
June
July
August
R’s
R’s
R’s
Sales
320 000
380 000
420 000
460 000
Purchases
160 000
160 000
230 000
250 000
Rent income
11 000
11 000
?
?
Salaries
26 800
26 800
?
?
1. 50% of the sales are for cash and the balance is on credit.
2. All credit sales are collected one month after the sale.
3. All purchases are on credit. Creditors are paid in full one month after the month of purchase.
4. The tenants rent contract stipulates an increase of 20% from 1 July 2018.
5. Salaries are expected to increase to R32 000 per month as at 1 August 2018.
6. A new motor vehicle will be purchased during June 2017. Repayments of R6 000 per month will commence on 1 July 2017.
7. Advertising costs are expected to be 2% of sales from 1 June 2018.
8. A fixed deposit of R25 000 will mature in the month of July 2018.
9. On 31 May 2018, the bank is expected to have a favourable balance of R420 000.
Required:
Prepare a
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