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Introduction, Structure, Layout and References ( 5 ) Cash Budget: Kumanbuy Traders ( 6 0 ) The following information is available regarding the operations of
Introduction, Structure, Layout and References Cash Budget: Kumanbuy Traders The following information is available regarding the operations of Kumanbuy Traders:Current and budgeted information: Actual Budgeted JanuaryFebruaryMarchAprilMayJune RRRRRRCash salesCredit salesSalariesSundry expenses ADDITIONAL INFORMATION A discount of will be allowed to cash customers. It is expected that debtors will settle their accounts as follows: in the month following the sale in the second month following the sale in the third month following the sale bad debts.Purchases are based on of total sales for each month. Suppliers are expected to allow days credit.Salaries are normally paid in the month in which they occur. This was not the case at the end of March when a technical problem occurred, and it was only paid on the second day of April.Kumanbuy Traders had negotiated a loan with the bank of R to be received on May x Interest at a rate of per annum is payable at the end of each quarter.The amount owing to SARS is R The final date for the payment of income tax is May xAccording to the rent contract that was signed on the st January rent expense for the year is R This must be paid quarterly in advance.A salary bonus of the average salaries of the first five months of the year will be paid in May.Sundry expenses are paid in the month in which they occur and include depreciation of R per month.The cash balance on March x is R REQUIREDCalculate the credit receipts and payments schedules.
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