Kaume Enterprises (KE') is a business that sels sueets. The company buys the sweets from producers and then packages them inte smat assorted packs. The business has gained popularity due to its assorted sweets that customers are not able bo get such mives efsewhere. KE is in the process of preparing budgets for the frst quarter of 2024 and the following information has been made avalable. 1. The cash balance on 1st January 2024 is expected to amount to N514 000. 2. Budgeted monthly sales units for the first four monthis of 2023 are as follows: 3. KE will charge each packet of sweets for NSS for January rising to NS7 in March 2024. Sales are 30% cash and 70% credi. Credir sales are collected over a three-menth period, 10% in the month of sale, 60% in the month following the salo and 30% in the second month following the sale. Total sales revenue in November 2024 and December 2024 amounts to N545 000 and NS54 000 iespectively. 4. Cast of sales is expected to be 75% of sales revenue each month. 5. The business maintains its closing inventory levels a60% of the following month's cost of sales. Inventory at the beginning of January is expected to amount to NS27 000 . 6. 65% of inventory purchased is paid for in the month of purchase and the remaining 35% is paid for in the month following purchase. At the 311 December 2023 amounts owed for purchases were NS13 800 . 7. A ban of N540 000 is expected to be received in January 2024. The company will repary this loan evenly over 20 months commencing in Febnary. 8. A motor vehicle which cost N58 000 when purchased second hand three years ago is expected to be sold in March 2024 for N53 300 . The expenses associated with this sale are expected to be N5300. 9. Equipment costing N512 000 wil be purchased in January 2024 and paid for in February. This equipment will be depreciaced on a straght-line basis over three years. 10. Operating expenses are paid as incurred. These have been estimated as folows: The above figures include depreciation on existing assets (excluding planned purchases/disposals detailed above) of N\$2 000 per month. Page 15 of 17 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES