Prepare the Cash Budget for a project of Irene Enterprises for the period 01 May 2023 to 30 June 2023. Note: Separate monetary columns are required for each month

INFORMATION

The following information for 2023 is available for a project of Irene Enterprises:

1. The bank account is expected to reflect a favourable balance of R100 000 on 30 April 2023.
2. Expected sales at R35 per unit are as follows:

	April	May	June
Total sales	20 000 units	21 000 units	22 000 units

1. Fifty percent (50%) of the sales is expected to be for cash and the balance on credit.
2. Customers who purchase on credit usually pay in the month after the sale.
3. The budgeted manufacturing costs are as follows:

Cost	March	April	May	June
Direct materials (excluding discount)	130 000	116 000	110 000	114 000
Direct labour	84 000	87 000	?	77 760
Manufacturing overheads	58 000	60 000	?	?

1. All direct materials are purchased for cash to take advantage of a 10% cash discount.
2. The employees involved in production are paid monthly. The direct labour costs for June 2023 are expected to be 8% more than the direct labour costs for May 2023.
3. The payment of manufacturing overheads is delayed by one month. These costs are expected to increase by R2 000 each month.
4. The selling and administrative costs for April 2023 are budgeted at R36 000. These costs are expected to increase by 5% each month and are payable in the month in which they are incurred.
5. Irene Enterprises expects to purchase a machine for R400 000 during May 2023. A deposit of 20% will be paid on 31 May 2023 and the balance is payable in five equal monthly instalments commencing June 2023.