QUESTION $4$

$(20$ Marks$)$

REQUIRED

Study the cash budget and additional information provided below and then answer the following questions:

$4\mathrm{.}1$ Calculate the figures indicated by A$,$ B and $C$ in the cash budget.

$[6$ marks$]$

$4\mathrm{.}2$ Comment on the cash budget and provide recommendations, where applicable.

$[8$ marks$]$

$4\mathrm{.}3$ Suppose the actual receipts and payments for March $2024$ indicated the following for three items in the cash budget:

Rent income

$R9000$

Advertising

R$3000$

Telephone

R$8700.$

Comment on your observations and provide ONE $(1)$ point of advice in each case.

$[6$ marks$]$

INFORMATION

SIKA LTD

CASH BUDGET FOR THE PERIOD $01$ JANUARY TO $31$ MARCH $2024$

$\backslash$table$[[,$JANUARY $($R$),$FEBRUARY $($R$),$MARCH $($R$)],[$RECEIPTS$,1284600,1603800,645000],[$Cash sales,A$,250800,228000],[$Colection from debtors,$540000,432000,396000],[$Rent income,$21000,21000,21000],[$Loan from XYZ Bank,?,$0,0],[$Ordinary share capital,$0,900000,0],[$PAYMENTS$,912600,864000,828000],[$Purchase of stock for cash,B$,316800,288000],[$Payment to creditors,$288000,c,211200],[$Repayment of loan,$0,33000,33000],[$Interest on loan,$0,4500,4200],[$Bank charges,$7500,?,6900],[$Salaries and wages,$240000,240000,252000],[$Telephone$,3900,3900,3900],[$Advertsing$,9000,9000,9000],[$Sundry expenses,?,$19200,19800],[$Cash surplus $($deficin$),372000,739800,(183000)$