Question 4 The management of Vulture Ltd decided to prepare a cash budget for April and May. The following information is available: January R February R March R April R May R Sales: Cash Credit Purchases Salaries and Wages Sundry expenses 340 200 630 000 731 500 72 300 19 600 650 000 720 000 555 700 72 300 21 800 410 000 840 000 940 000 72 300 22 400 380 000 740 000 480 000 72 300 22 500 420 000 500 000 650 000 72 300 23 000 2. Additional information 1. Cash in respect of credit sales is collected as follows: 50% within 30 days 30% within 60 days 15% within 90 days 5% is uncollectable The following discounts are allowed on sales: 10% on cash sales 5% on credit sales if accounts are settled within 30 days 3. All salaries, wages and expenses are paid in cash. 4. Sundry expenses, which are paid in cash, include depreciation of R4 500 per month. 5. 70% of all purchases are on credit and are paid during the month that follows the month of transaction. 6. On 31 May an interim dividend of R8 000 was declared. 7. The cash in the bank on 31 March was R2 900. Required Prepare a cash budget for the period 1 April to 31 May. (20)