Question
b) Parmalat Plc presents you with the following data relating to its budgeted sales for the first four months of 20X1 January February March
b) Parmalat Plc presents you with the following data relating to its budgeted sales for the first four months of 20X1 January February March April Sales 16,000 18,000 14,000 15,000 All sales are on credit, and receivables tend to pay in the following pattern: In month of sale In month after sale Two months after sale 2010 101 % 15 35 45 The organisation expects the rate of bad debt to be 5%. Required Prepare a cash budget showing the cash receipts for each month. Suggest ways by which management can address any surplus or deficit during the planning period. 50 Marks Total 100 Marks
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