Prepare the Cash Budget for January, February, and March 2022. Comment on the cash position of the

Fantastic news! We've Found the answer you've been seeking!

Question:

Prepare the Cash Budget for January, February, and March 2022.

Comment on the cash position of the company for the budgeted period.

INFORMATION

1. Some of the items in the Statement of Financial Position as of 31 December 2021 of Lomax Ltd are as follows:

R Current assets Accounts receivable 1 300 000 Bank 235 000 Current liabilities Accounts payable (for material purchases) 95 000 Other current liabilities

2. The following forecasts have been made by Lomax Ltd for the first three months of 2022 for the bricks that it produces which are sold in pallets (with each pallet comprising 500 bricks);

The sales manager anticipates the following credit sales: 21 January February March 2 160 pallets 2 340 pallets 2 250 pallets The bricks are sold at a constant price of R500 per pallet. Ten percent (10%) of the sales are for cash and the rest is on credit. Debtors pay their accounts one month after the sale is made.