Corporate finance

QUESTION 3 [42 marks] As the financial manager of Gbex Solutions, prepare the Cash flow forecast for the last quarter of 2022, October - December 2022. The accounting department provided the following actual and forecasted sales and cost of sales figures for the required period. Month Sales Cost of sales July R 21 461 250 R 13 407 750 August R 18 850 500 R 14 668 875 September R 15 664 500 R 11 814 750 October R 17 950 000 R 13 540 500 November R 21 903 750 R 18 452 250 December R 18 319 500 R 14 337 000 Additional information: . The closing bank balance as of 30 September 2022 amounted to R5 973 750. . The monthly minimum cash balance requirement is set at R2 655 000. . The monthly sales are: o 60% cash sales and o 40% credit sales, collected: . 25% collected 30 days after sales 10% collected 60 days after sales 4% collected 90 days after sales 1% written off as irrecoverable The monthly cost of sales: o 35% wages which gets paid every month on the last day of the month and o 65% relate to inventory purchases, paid: . 70% paid 30 days after purchase . 30% paid 60 days after purchase . Sales commission is paid at 15% of monthly sales; this is paid the month after the sales occurred. 243 HPFM440-1-Jul-Dec2022-SA1-GC-V4-26072022