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QUESTION FOUR [20] The following information pertains to Orange Traders for three months ended 31 May 2022. Additional Information: 1) It is expected that debtors

image text in transcribed QUESTION FOUR [20] The following information pertains to Orange Traders for three months ended 31 May 2022. Additional Information: 1) 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 2) The remaining 5% is usually written off as bad debts. 3) Trade creditors are paid in the month after the purchases at a discount of 5%. 4) 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. 5) Expenses are paid as they arise. 6) The favourable bank balance on 1 April 2018 was R 21000 . Required: 4 Prepare the Cash Budget of Orange Traders for April and May 2022. Show all workings. (20)

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