QUESTION $1$

Siyakha Ltd$.$ started making concrete for the private sector on $1$ January $2022.$ They manufacture and sell several grades of concrete. The following transactions are expected to take place during January to June $2022$:

In order to raise capital, management decided to issue $200000$ R$1\mathrm{.}50$ ordinary shares for cash on $1$ January.

Sales volume was expected to be $44$ cubic meters $(m^3)$ in January, $33m^3$ in February, $57m^3$ in March, $69m^3$ in April, and increase by $4m^3$ per month thereafter. Each $m^3$ is expected to sell at R$2500$

Cash sales are expected to be R$20000$ in January, R $40000$ for each of the next three months and R $60000$ per month thereafter.

Sixty per cent of credit customers are expected to pay after $30$ days $($one month$)$ and receive a discount of $2\mathrm{.}5\%.$ The remaining credit customers will pay after $90$ days $(3$ months$),$ but $10\%$ of them are expected to be bad debts.

Purchases of raw material are planned to be R$105000$ in January and R$85000$ in February, increasing at R$10000$ per month thereafter. Concrete Ltd$.$ negotiated a $60$day $(2$ months$)$ credit terms with their suppliers. The closing stock at the end of the sixmonth period will be R$260000.$

Plant costing R$100000$ will be purchased in January and paid for in that month, net of $10\%$ retention which will be released in May. This plant is to be depreciated over a fiveyear period with no scrap value.

Additional premises that cost R$40000$ per annum will be rented, paid quarterly in advance.

Concrete Ltd negotiated an overdraft interest of $15\%$ per annum on the overdrawn balance at the end of each month. There is no interest on cash surpluses.

Wages and salaries will amount to R$40000$ per month for the first three months and thereafter it will increase to R$45000$ per month. The payroll taxes will amount to $15\%$ of total payroll cost and will be paid to SARS in the month after the deduction was made.

Building and equipment insurance amounts to R$30000$ for the year, payable in January.

Rates are R$60000$ for the year, payable in two equal instalments in March and September.

Administration costs are R$10000$ per month, paid one month in arrears.

The advertising costs for the launch of the business was R$25000$ payable in March.

Selling costs of R$5000$ per month will be incurred from January to April, thereafter it will decrease to R$2000$ per month. Selling costs are payable one month in arrears.

Additional premises will be purchased in March for R$55000.$

Required:

Using the above information, prepare:

$1\mathrm{.}1$ a cash budget for the six months ending $30$ June $2022$

$1\mathrm{.}2$ a budgeted statement of comprehensive income for the six months ending $30$ June $2022$

$1\mathrm{.}3$ a budgeted statement of financial position as at $30$ June $2022$