QUESTION [20 MARKS The following information was taken from the financial record of NB Cables and Electrical Limited The counting period of NB Cables and med ends musly on 31 December INFORMATION: EXTRACT FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2014 Equity and liabilities Issued Share capital (200 000 ordinary stores 300 000 Loan 100 000 Bank overdrat 18500 1 the sales over the past few years The company els sewentory for both cash and credit. The following panem is reted with regards to Cash sales 25% of total sales Credits 2 The actual and projected total sales are given below ACTUAL TOTAL SALES 2014 August September October R R 20.000 28 000 42.000 PROJECTED TOTAL SALES 2014 November December R R 22 000 16 500 3 As in the past. Cred sales are collected as follows 20% in the month of sale - 75% in the month following the month of sale fie alter 30 dayand the balance in the second month following the month of seater 60 day Al purchases will be sented in the month following the month of purchases. The actual and projected purchases are below ACTUAL PURCHASES 2014 August September October R R 15.000 15400 R PROCTED PURCHASER 2014 November R 12.900 December R 33 000 COURSE ACCOUNTING QUESTION 3. CONTINUED 5 6 The company has an authorised ordinary share capital of 245 000 and will offer the issued ordinary shares to existing shareholders at R2.00 per share on December 2014. Al monies will be received dung December 2014 Other monthly expenses that remain content from month to month are as follow Sundry expenses R550 Solares R18000 The mortgage bond is reduced annually on November by an instalment of R15 000. Interest is charged at 10 pa and is payable at the end of every second month e 28 February. 30 April 30 June 31 August 31 October and 31 December Bonuses of 10% on alles will be paid with the November B. REQUIRED Prepare the cash budget of NB Cable and Electrical Limited for the period 1 November 2014 to 31 December 2014. The cash budget must be bulanced at the end of each month 0201