QUESTION THREE Below is the financial information for XY Limited. 125) 1. The projection for the 3 months of 2017 are May June July R's 420 000 230 000 August Sales Purchases Rent income Salaries 320 000 160 000 11 000 26 800 380 000 160 000 11 000 26 800 460 000 250 000 0% of the sales are for cash and the balance is on credit. 3. All credit sales are collect one month after the sale. 4. All p 5. The t 6. Salaries 7. A new urchases are on credit. Creditors are paid in full one month after the month of purchase. enants rent contract stipulates an increase of 20% from 1 July 2017 are expected to increase to R32 000 per month as at 1 August 2017. motor vehicle will be purchased during June 2017. Repayments of R6 000 per month will commence on 1 July 2017. 8. Advertising costs are expected to be 2% of sales from 1 June 2017. 9. A fixed deposit of R25 000 will mature in the month of July 2017. 10. On 31 May 2017, the bank is expected to have a favourable balance of R420 000. Required: Prepare a Cash Budget for 3 months ending August 2017