Question 1203712: The following information pertains to SK Traders for the three months ended 30 June 2021:
Actual Budgeted
April May June
Sales (20% for cash and 80% on credit) 380,000 420,000 460,000
Purchases (10% for cash 90% on credit) 250,000 300,000 340,000
Salaries and wages paid 50,000 70,000 70,000
Cash expenses 28,000 32,000 36,000
Depreciation 2,000 2,000 2,000
• It is expected that debtors will settle their accounts as follows: 20% in the month of sale
70% in the month after the month of sale, and 5% in the second month after the month of sale
• The remaining 5% is usually written off as bad debts.
• Trade creditors are paid in the month after the purchases at a discount of 5%.
• 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred.
• Expenses are paid as they arise.
• The favorable bank balance on 1 May was R20 000.
Required:
Prepare the Cash Budget of SK Traders for June and July 2021.
Answer by ikleyn(52778)   (Show Source):
You can put this solution on YOUR website! .
This deeply Financial/Accounting problem is not for this forum, which is intended to help students in Math.
To go to this forum with such questions is the same
as to go to a dentist to treat a cancer.
Find another, more appropriate forum/web-site for it.
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