The following information was extracted from the records of Papa Pronto (Pty) Ltd: Other operating expenses...

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The following information was extracted from the records of Papa Pronto (Pty) Ltd: Other operating expenses (Rands) 5.500 6 050 6 600 8 250 September October November December Additional information: - . Month Sales (Rands) - a) Cash in respect of credit sales is collected as follows: 28% of the company's sales are in cash and the balance (72%) is on credit and is collected as follows: 70% in the month of the sale - 330 000 357 500 385 000 275 000 - Purchases (Rands) 220 000 247 500 330 000 341 000 20% in the month following the sale 9% in the 2nd month following the sale 1% is uncollectable. b) 80% of the purchases are all paid in cash in the month incurred. This entitles the company to a 5% cash discount; the balance is paid in the following month. c) All other expenses are paid in the month in which they are incurred. The other operating expenses include the monthly depreciation expense of R1 200. d) The company receives commission income of R2 500 per month. e) Tax owing to SARS of R3 000 will be paid in December. f) A new delivery vehicle costing R88 0000 will be purchased for cash in December. g) The opening bank balance on 1 November 2023 was R62 000. REQUIRED Prepare the cash budget of Papa Pronto (Pty) Ltd for the months of November and December 2023. Instructions: When completing the templates below ensure that numbers are written without the R symbol and without spaces, for example R 100 000 is filled in as 100000. Use brackets for example (200000) where applicable. Round off numbers to the nearest whole number where necessary. Where no amount is applicable indicate with a "0" The following information was extracted from the records of Papa Pronto (Pty) Ltd: Other operating expenses (Rands) 5.500 6 050 6 600 8 250 September October November December Additional information: - . Month Sales (Rands) - a) Cash in respect of credit sales is collected as follows: 28% of the company's sales are in cash and the balance (72%) is on credit and is collected as follows: 70% in the month of the sale - 330 000 357 500 385 000 275 000 - Purchases (Rands) 220 000 247 500 330 000 341 000 20% in the month following the sale 9% in the 2nd month following the sale 1% is uncollectable. b) 80% of the purchases are all paid in cash in the month incurred. This entitles the company to a 5% cash discount; the balance is paid in the following month. c) All other expenses are paid in the month in which they are incurred. The other operating expenses include the monthly depreciation expense of R1 200. d) The company receives commission income of R2 500 per month. e) Tax owing to SARS of R3 000 will be paid in December. f) A new delivery vehicle costing R88 0000 will be purchased for cash in December. g) The opening bank balance on 1 November 2023 was R62 000. REQUIRED Prepare the cash budget of Papa Pronto (Pty) Ltd for the months of November and December 2023. Instructions: When completing the templates below ensure that numbers are written without the R symbol and without spaces, for example R 100 000 is filled in as 100000. Use brackets for example (200000) where applicable. Round off numbers to the nearest whole number where necessary. Where no amount is applicable indicate with a "0"

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To prepare the cash budget for Papa Pronto Pty Ltd for the months of November and December 2023 we need to calculate the cash receipts and cash paymen... View the full answer