e) The following information relates to Fox-Gloss Ltd. for the 3 months to 31 March 2021:...

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e) The following information relates to Fox-Gloss Ltd. for the 3 months to 31 March 2021: Fax-Glas Ltd. Budgted Profit and Las Aacunts January February March Manth (S000) (S000) (S000) Sales (all on credit) 2,500 4,130 5,500 Cost of sales (1,770) 1,850 (1,100) 1400 Gross profit Depreciation Other expenses 2360 7,350 (200) (400) 1,760 (200 (500 (200) (350) Net profit 850 6,650 Fax-Glas Ltd. Budgeted balanoeshets December January February (S000) March Budgeted balances (S000) (S00) (S000) Current as sets: Stocks 150 110 160 450 120 Debtors 250 300 500 Short-lerm investments 40 60 50 Current kabilitias: Trade croditors 150 110 200 160 Other creditors 40 40 40 Taxation 200 Dividends 300 Additional information: 1. The company spent $15,550 for a new machine to replace a worn-out machine which was bought at cost for $25,000. The old machine has a salvage value of $2,500. 2. Additional $33,030 was spent on new furniture for the office. This furniture was classified as part of the company's 'Furniture and Fittings'. 3. Cash at bank of the 1" of January 2021 is expected to be $27,560. The company budgeted an additional 10% for 31 March 2021's cash balance. Required: Prepare Fox-Gloss Ltd.'s cash budget for each of the 3 months during 2021. the quarter ending 31 March (15 marks) e) The following information relates to Fox-Gloss Ltd. for the 3 months to 31 March 2021: Fax-Glas Ltd. Budgted Profit and Las Aacunts January February March Manth (S000) (S000) (S000) Sales (all on credit) 2,500 4,130 5,500 Cost of sales (1,770) 1,850 (1,100) 1400 Gross profit Depreciation Other expenses 2360 7,350 (200) (400) 1,760 (200 (500 (200) (350) Net profit 850 6,650 Fax-Glas Ltd. Budgeted balanoeshets December January February (S000) March Budgeted balances (S000) (S00) (S000) Current as sets: Stocks 150 110 160 450 120 Debtors 250 300 500 Short-lerm investments 40 60 50 Current kabilitias: Trade croditors 150 110 200 160 Other creditors 40 40 40 Taxation 200 Dividends 300 Additional information: 1. The company spent $15,550 for a new machine to replace a worn-out machine which was bought at cost for $25,000. The old machine has a salvage value of $2,500. 2. Additional $33,030 was spent on new furniture for the office. This furniture was classified as part of the company's 'Furniture and Fittings'. 3. Cash at bank of the 1" of January 2021 is expected to be $27,560. The company budgeted an additional 10% for 31 March 2021's cash balance. Required: Prepare Fox-Gloss Ltd.'s cash budget for each of the 3 months during 2021. the quarter ending 31 March (15 marks)

Answer rating: 100% (QA)

Cash budget Jan Feb March Cash Receipts Collection from Trade debtors 2450 3980 5450 Sale of investm... View the full answer