5.1

Consider the following project of Dladla Enterprises that comprise only the following three activities viz. Material, labour and transport. The costs are incurred when the work is performed but the cash flow depends on the timing of the income and expenses. The timing of the expenses are shown below:

Expenses	March (R)	April (R)	May (R )	Cash flow information
Material (delivered to workshop)	8 000	10 000	-	Supplier gives one month
Labour	-	5 000	12 000	Pay in the month of use
Transport to site	-	-	4 000	Pay one month before work is performed

The income from the client is a 40% mark-up of the expenses for each month and is received one month after the work is performed.

Required

Draw up a Cash budget of Dladla Enterprises for the period 01 March to 30 June 2018.

Note: For the month of June, only the receipts are required.