ADVANCED DIPLOMA IN FINANCIAL MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR DISTANCE QUESTION FOUR [20] The following information pertains to LMN Traders for three months ended 31 may 2018 Actual Budgeted April May March R R R Sales (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation 360 000 240 000 40 000 24 000 2 000 380 000 280 000 60 000 28 000 2 000 400 000 320 000 60 000 32 000 2 000 Additional Information: 1) 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 2) The remaining 5% is usually written off as bad debts. 3) Trade creditors are paid in the month after the purchases at a discount of 5%. 4) 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. 5) Expenses are paid as they arise. 6) The favourable bank balance on 1 April 2018 was R21 000. page 247 Required: Prepare the Cash Budget of LMN Traders for April and May 2018. Show all workings. END OF SHORT-TERM FINANCIAL MANAGEMENT ASSIGNMENT 4:08 PM