QUESTION $1$

The following information pertains to Sim Traders for the three months ended $30$ June $2022$:

It is expected that debtors will settle their accounts as follows: $20\%$ in the month of sale $70\%$ in the

month after the month of sale, and $5\%$ in the second month after the month of sale

The remaining $5\%$ is usually written off as bad debts.

Trade creditors are paid in the month after the purchases at a discount of $5\%.$

$50\%$ of the salaries and wages are weekly wages. Because wages are paid weekly, usually $10\%$ of the

wages are paid in the month following the month in which they were incurred.

Expenses are paid as they arise.

The favourable bank balance on $1$ May was R$50000.$

Required:

Prepare the Cash Budget of Sim Traders for May and June $2022.$