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Required: Prepare a Cash Budget for the period 1 November and 31 December 2018. The members of Networx Ltd decide to prepare a Cash Budget
Required: Prepare a Cash Budget for the period 1 November and 31 December 2018.
The members of Networx Ltd decide to prepare a Cash Budget for November and December 2018. The following information is available: 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 The balance is written off as irrecoverable. BAD DEBT - IGNORE 2. The following discounts are allowed on sales: 10% on cash sales 7.5% on credit sales if accounts are settled within 30 days. 3. All salaries, wages and sundry expenses are paid in cash. 4. Sundry expenses include depreciation of R4 200 per month. Exclude depreciation 5. Seventy-five (75%) of all purchases are on credit and paid within 30 days. The balance is paid in cash. 6. A year-end bonus to employees totalling R20 000 will be paid in December. 7. The cash in the bank on 31 October 2018 was R44 500Step by Step Solution
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