In order to ascertain clarity on how much cash Builders (Pty) Ltd needs each month, complete the cash budget using the information below.

Sales (in rand) are as follows:

June July August September October November

800 000 1 200 000 1 400 000 1 500 000 1 600 000 3 000 000

Of the company's sales, 50% are done in cash. Credit sales are collected as follows:

30% during the month of sale

30% during the first month following the month of sale

20% during the second month following the month of sale

20% during the third month following the month of sale

Purchases are as follows:

June July August September October November

500 000 600 000 400 000 700 000 800 000 2 000 000

All purchases are on credit and are paid as follows:

40% during the month of purchase

20% during the first month following the month of purchase

20% during the second month following the month of purchase

20% during the third month following the month of purchase

Other information

Salaries and wages of R200 000 are paid monthly

Rent of R60 000 on a monthly basis

Interest on debt of R6 000 each month

Major maintenance on machines and plant amounting to R1 400 000 in October was undertaken.

Depreciation costs of R40 000 is charged on a monthly basis

At the beginning of September, the business will have R90 000 in cash

The management of the company has a policy of maintaining R50 000 minimum cash balance.

Requirements:

Compile the cash budget for cash builders (Pty) Ltd for the months of September, October and November. Also indicate the financing needed to maintain the minimum cash balance and meet the operational requirements.

Question 23

Calculate the total credit sales collected for October. 1. R140 000

2. R225 000

3. R240 000

4. R725 000

Question 24

Calculate the opening balance for October.

1. R90 000

2. R629 000

3. R172 000

4. R862 000

Question 25

Calculate the total credit purchases collected for September.

1. R100 000

2. R120 000

3. R280 500

4. R580 000

Question 26

Calculate the total credit sales collected for November.

1. R460 000

2. R980 000

3. R1 475 000

4. R2 308 000 10

Question 27

Calculate the financing required for October.

1. R50 000

2. R222 000

3. R579 000

4. R812 000

Question 28

Calculate the financing required for November.

1. R50 000

2. R629 000

3. R812 000

4. R862 000

Question 29

Calculate the cash sales for September.

1. R210 000

2. R750 000

3. R800 000

4. R1 500 000

Question 30

Calculate the credit purchases for June that were collected in September.

1. R80 000

2. R100 000

3. R120 000

4. R280 000