Required:

Prepare the Cash Budget of X Traders for June and July 2022. (25)

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

The remaining 5% is usually written off as bad debts.

Trade creditors are paid in the month after the purchases at a discount of 5%.

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.

Expenses are paid as they arise.

The favorable bank balance on 1 May was R30 000.

The following information pertains to X Traders for the three months ended 30 June 2022