10.2.3 ACCOUNTING 2: ASSIGNMENT 2 QUESTION ONE The members of Networx Ltd decide to prepare a Cash Budget for November and December 2018. The following information is available: [100] [20] Actual Budgeted August September October November December R R R R R Sales: Cash 194 500 235 700 275 000 250 500 368 000 Credit 287 300 350 000 410 000 400 400 697 000 Purchases 510 000 490 000 495 000 520 000 680 000 Salaries & Wages 72 600 72 600 72 600 72 600 72 600 Sundry Expenses 17 800 18 400 22 000 22 600 25 700 Additional information: 1. Cash in respect of credit sales is collected as follows: 50% within 30 days 30% within 60 days 15% within 90 days The balance is written off as irrecoverable. BAD DEBT - IGNORE 2. The following discounts are allowed on sales: 10% on cash sales 7.5% on credit sales if accounts are settled within 30 days. 3. All salaries, wages and sundry expenses are paid in cash. 4. Sundry expenses include depreciation of R4 200 per month. Exclude depreciation 5. Seventy-five (75%) of all purchases are on credit and paid within 30 days. The balance is paid in cash. 6. A year-end bonus to employees totalling R20 000 will be paid in December. 7. The cash in the bank on 31 October 2018 was R44 500. Required: Prepare a Cash Budget for the period 1 November and 31 December 2018