Additional information: 

 Debtors settle their accounts as follows: 50% in the month of sale, 30% in the month after the month of sale, and 15% in the second month after the month of sale while the remaining 5% are considered irrecoverable. *Trade Creditors are paid as follows: 60% in the month of purchase, 30% in the month after the purchase while the remaining 10% is paid in the second month after the purchase.

 Wages and salaries and all the other expenses are paid as they are incurred every month.

 Other expenses include depreciation of R10 000 every month. 

A loan of R120 000 was taken 5 years ago. interest on the loan is 10% per annum. The annual interest expense is spread evenly through the year and is paid as it is incurred. *The favourable bank balance at the end of October was R15 000. 

Prepare the Cash Budget for the months of November and December 2023.

Transcribed Image Text:

The following information relates to Padua (pty) tid for the three months ended 31 December 2023: Budgeted Sales (50% for cash) Purchases (30% for cash 70% on credit) Salaries and wages paid Other expenses Actual October R 900 000 800 000 25 000 15 000 November R 1 000 000 900 000 30 000 17 000 December R 1 200 000 1 000 000 35 000 21.000 The following information relates to Padua (pty) tid for the three months ended 31 December 2023: Budgeted Sales (50% for cash) Purchases (30% for cash 70% on credit) Salaries and wages paid Other expenses Actual October R 900 000 800 000 25 000 15 000 November R 1 000 000 900 000 30 000 17 000 December R 1 200 000 1 000 000 35 000 21.000

Answer rating: 100% (QA)

SOLUTION The calculations for Padua Plys cash budget for December 2023 Cash Inflows Oc... View the full answer