7 FMA401 V OCTOBER/NOVEMBER 2021 Question 4 [20 marks - 33 minutes] Mahogany (Pty) Ltd is manufacturer of furniture products. The company forecasts sales are as follows: July August September October November December 600 000 300 000 700 000 800 000 500 000 900 000 40% of the sales are done in cash. Credit sales are collected as follows: . 30% is collected in the month of sale The remainder collected in the first month after the month of sale . Mahogany (Pty) Ltd does all its purchases on credits. The forecasts for the credit purchases are as follows: September October November December 400 000 600 000 300 000 800 000 The purchases payment method is structured as follows: 60% of purchases are done in the month of purchase, and The remainder paid first month after the month of purchase. . . Additional information: . Salaries and wages of R20 000 are paid monthly Rent of R10 000 is paid monthly A once off interest payment of R200 000 is due in November A once off trading fine of R400 000 is due in December Depreciation costs of R50 000 on all assets are payable monthly Water and electricity of R30 000 paid monthly September had a cash closing balance of R500 000 Required Use the table provided below, compile a cash budget for the period of October, November, and December. (Show all your calculations, please use rough). . [TURN OVER] 8 FMA401V OCTOBER/NOVEMBER 2021 Table for the cash budget for October, November, and December: Item October November December Opening balance