Sales for October, November, and December are expected to be R200 000, R180 000, and R220 000, respectively, for Tolo Company. All sales are on account (terms 2/15, net 30 days) and are collected 50 percent in the month of sale and 50 percent in the following month. One-half of all sales discounts are taken on the average. Materials are purchased one month before being needed, and all purchases and expenses are paid for as incurred. Activities for the quarter are expected to be:

Materials used Salaries Maintenance and repairs Depreciation

Utilities and other Dividends paid Payment on bonds

Required:

Using the given information, prepare a cash budget

October R40 000 R70 000 R18 000 R36 000 R14 000

R0 R8 000

November R36 000 R68 000 R18 000 R36 000 R14 000 R10 000

R8 000

December R44 000 R72 000 R18 000 R36 000 R14 000

R0 R8 000

for November.