Cash budget is prepared for the purpose of cash planning and control, and also to determine or identify possible cash shortages. As a project manager, you are given the following information for Kabedi Enterprises: 1. On 31 March 2016 the bank account in the general ledger reflected a debit balance of R40 000. 2. Sales figures before taking any discounts in respect of cash or credit sales are: March April May R R R June Cash Sales 60 000 68 000 64 000 R Credit Sales 42 000 36 000 32 000 70 000 40 000 3. The following discounts are given as incentives to customers: Cash discount of 12%; settlement discount of 5% on credit sales if accounts are settle 30 days after the sales. 4. Collections from debtors are expected as follows: 50% 30 days after the sale 30% 60 days after the sale 18% 90 days after the sale 2% written off after 90 days 5. The production records for finished goods reveal the following production costs: Actual Budgeted March April May June R R R R Direct material 40 000 32 000 28 000 30,000 Direct Labour 32 000 24 000 20 000 16 000 Overheads 16 000 12 000 10 000 8 000 6. 50% of the material purchases are on credit. Creditors are usually paid as follows: 70% within the same month of the purchase 30% 30 days after the purchase. 7. Payment of overhead costs and selling and administrative costs are delayed by one month. Selling and administrative costs are as follows: March (actual) R13 000 April (expected) R14 000 May (expected) R14 400 June (expected R16 000 8. The proprietor is expected to increase her capital contribution by R100 000 in June 2016. 9. Employees involved in the production of finished goods (direct labour) are paid wages. Since wages are paid on specific days, only 75% of a month's budgeted wages are paid in that month. The rest are paid in the following month