QUESTION 1 Beeva (Pty) Ltd. is a retail distributor of after-market automotive parts. The management accountant has prepared sales budgets for the six months from July to December 2015. These are presented below: July October August September 50 000 30 000 35 000 25 000 Month Cash sales Credit sales Total sales November December 35 000 20 000 425 000 520 000 460 000 540 000 495 000 430 000 525 000 450 000 500 000 530 000 460 000 550 000 Additional information: Collections from accounts receivable are as follows: 50% in the month of sale and is subject to a 2% settlement discount 30% one month after the month of sale 15% two months after the month of sale and the remainder is uncollectible. Beeva (Pty) Ltd.'s inventory requirements are equal to 30% of the next month's total budgeted sales amount. (Inventory is purchased in the month preceding its expected sale.) The suppliers' terms of payment require that 45% be paid in the month of purchase and the balance is payable in the month after the month of purchase. All purchases are on credit January 2014 sales are expected to comprise credit and cash sales of R580 000 and R40 000 respectively. Beeva (Pty) Ltd. Is expected to have a bank overdraft of R50 000 on 31 October 2015. The bank overdraft is as result of a dividend payment to be made in October. Selling and administrative costs amount to 50% of the monthly total sales and includes depreciation of R20 000 per month REQUIRED Prepare a cash budget for Beeva (Pty) Ltd. by month for November and December 2015