Q.1.3 (30)

Ramgoon Ltd would like to see their budgeted cash flow for July and August. They have given you the following additional information:

Expenses for July R20 000 and August R35 000;

Creditors for July R25 000 and August R25 000;

Opening balance at 1 July 2019 R120 000.

Refer to Q.1.2 for details on sales.

Q.1.2 Total budgeted sales for Ramgoon Limited for the next few months are expected to (9) be as follows: Month Budgeted total sales June 2019 R160 000 July 2019 R182 000 August 2019 R175 000 Additional information: May 2019 total sales was R190 000. Debtors are expected to pay their debts as follows: 65% in the first month following the month of the sale (i.e. 30 days) 30% in the second month following the month of the sale (i.e. 60 days) 5% irrecoverable. 70% of Ramgoon Limited's total sales are on credit. Required: Set up a debtor's schedule for July and August 2019, for Ramgoon Ltd to be able to budget what they can receive from debtors during these months. Show all workings. Q.1.3 Ramgoon Ltd would like to see their budgeted cash flow for July and August. They (10) have given you the following additional information: Expenses for July R20 000 and August R35 000; Creditors for July R25 000 and August R25 000; Opening balance at 1 July 2019 R120 000. Refer to Q.1.2 for details on sales. Required: Redraw the following table in your answer book to show Ramgoon Ltd's budgeted cash flow for July and August. July August Opening balance Movement during the month Expenses paid Creditors paid Debtors receipts Cash sales Closing balance Show all workings