QUESTION FOUR

The following information for the $2021$ financial year is available for ABH Enterprises Ltd:

Additional information:

$($a$)$ Credit sales are collected as follows:

$50\%$ within $30$ days $($the next month$)$

$25\%$ within $60$ days

$15\%$ within $90$ days

$10\%$ uncollectible $($bad debt$)$

$($b$)$ The following discount is given on sales:

$10\%$ on all cash sales

$5\%$ on credit sales paid within $30$ days

Salaries, wages and other expenses are paid in cash.

$($c$)$ Other expenses include depreciation of R$4000$ per month. $55\%$ of all purchases are on

credit and are paid for in the following month. The rest represents cash purchases. The

bank balance on $1$ June $2021$ is R$200000.$ A dividend of R$3000$ will be declared on $31$

August $2021.$

Required:

Prepare the cash budget for the period $1$ June to $31$ August $2021.$