Question 3
The following information pertains to X Traders for the three months ended 30 June 2022:
	Actual	Budgeted
	April	May	June
	R	R	R
Sales (20% for cash and 80% on credit)	500 000	540 000	580 000
Purchases (10% for cash 90% on credit)	360 000	410 000	450 000
Salaries and wages paid	70 000	90 000	100 000
Cash expenses	28 000	32 000	36 000
Depreciation	2 000	2 000	2 000
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 favorable bank balance on 1 May was R30 000.
Required: - Prepare the Cash Budget of X Traders for June and July 2022.