dor The following information has been obtained from the books of Tsoene Motho Retailers for the...

 

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dor The following information has been obtained from the books of Tsoene Motho Retailers for the first quarter of 2023: (i) Total sales figures (actual and budgeted) are: Actual 2022 November December M240 000 M252 000 Total sales October M260 000 (vii) January 60%: one month after the sale 40%: two months after the sale. M268 000 Budgeted 2023 February M250 000 (ii) The cash book of the company at the end of December 2022 showed a positive bank balance of M8 000. opening balance (iii) Rent amounts to M180 000 per annum and is payable monthly. (iv) Selling and administrative expenses are estimated to be 20% of sales and are payable in the same month in which sales are made. × 468000 (v) An equipment sting M25,000 that was purchased in December 2021, will be paid for in February 2022. (vi) Cash sales account for 30% of total sales. Credit sales (70 %) are usually collected as follow: March M246 000 80.000 €15000 3 Forty (40%) of all purchases are for cash. The total purchases are as follows: Dec. Jan Feb. Mar. M190 000 M182 000 M150 000. M160 000 25000 (viii) Creditors are paid in full in the month after the purchases. (ix) All other expenses are paid monthly and are expected to amount to M20 000 per month. Required: a) Prepare a monthly cash budget for January, February, and March 2023. [17] b) With reference to Tsoene Motho (Pty) Ltd, explain TWO benefits a business may derive from preparing and using cash budget. [4] c) Explain TWO challenges that a business might face in the preparation and use of a [4] dor The following information has been obtained from the books of Tsoene Motho Retailers for the first quarter of 2023: (i) Total sales figures (actual and budgeted) are: Actual 2022 November December M240 000 M252 000 Total sales October M260 000 (vii) January 60%: one month after the sale 40%: two months after the sale. M268 000 Budgeted 2023 February M250 000 (ii) The cash book of the company at the end of December 2022 showed a positive bank balance of M8 000. opening balance (iii) Rent amounts to M180 000 per annum and is payable monthly. (iv) Selling and administrative expenses are estimated to be 20% of sales and are payable in the same month in which sales are made. × 468000 (v) An equipment sting M25,000 that was purchased in December 2021, will be paid for in February 2022. (vi) Cash sales account for 30% of total sales. Credit sales (70 %) are usually collected as follow: March M246 000 80.000 €15000 3 Forty (40%) of all purchases are for cash. The total purchases are as follows: Dec. Jan Feb. Mar. M190 000 M182 000 M150 000. M160 000 25000 (viii) Creditors are paid in full in the month after the purchases. (ix) All other expenses are paid monthly and are expected to amount to M20 000 per month. Required: a) Prepare a monthly cash budget for January, February, and March 2023. [17] b) With reference to Tsoene Motho (Pty) Ltd, explain TWO benefits a business may derive from preparing and using cash budget. [4] c) Explain TWO challenges that a business might face in the preparation and use of a [4]

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Answer a Monthly Cash Budget for January February and March 2023 January February March Total Cash R... View the full answer