Scanned with CamScanner Question 5 (20 marks, 36 minutes) TMK Enterprises prepares budgets quarterly. They are certy in the process of preparing the budget for the first quarter of 2020 covering the pennd of January to March 2020. You wa the management accountant of TUK Enterprises and you have gathered the following information pertaining to the period. 1. Sales for the next four month period Month January February NS 40 000 70 000 BO 00 20 octobre To the fologe ind in the cand em Bactress 2019 NS30 000 unt Dec 2013 to 530 000 2. Cesto conser for month 3. It is company policy to keep sosing inventory at 75% of the following months cost of Opening nentory in January 2010 Dected to amount to N$18.000 4. SON of the eventory purchased a paid for in in the month of puth The balance is ud for in the month following purchase Afthe 31 December 2019. N$11 700 was owing to suppliers This expects to receive a donation of 500 000 in the middle of January 2020 divery motorcycle when cost NSS 000 when purchaud second hand four years ago is trpected to be sold in March 2020 for N53 000. At the time of sale, the book value of the choryce N$1 800 7. Os future mounting to N54 500 wil be bought and paid for in February 2020 The muttercated on a straight line basis over three years tonering perces are paid in the more they are curred. Operating expenses have Month enter Note Det NS 12 300 16 900 16800 The sheeran coins include de connecting asset of 52000 por month The cash boon 2020 spect to amount to $8000 Papeals Scanned with CamScanner Marks 5 Required 5.1 Compute the purchases figure for each month from January 2020 to March 2020 Prepare a cash budget on a monthly basis in columnar format) for the period 52 January 2020 to March 2020 (Show al calculations). 53 List any three reasons why companies prepare cash budgets Total 12 3 20 END OF QUESTION PAPER Scanned with CamScanner Question 5 (20 marks, 36 minutes) TMK Enterprises prepares budgets quarterly. They are certy in the process of preparing the budget for the first quarter of 2020 covering the pennd of January to March 2020. You wa the management accountant of TUK Enterprises and you have gathered the following information pertaining to the period. 1. Sales for the next four month period Month January February NS 40 000 70 000 BO 00 20 octobre To the fologe ind in the cand em Bactress 2019 NS30 000 unt Dec 2013 to 530 000 2. Cesto conser for month 3. It is company policy to keep sosing inventory at 75% of the following months cost of Opening nentory in January 2010 Dected to amount to N$18.000 4. SON of the eventory purchased a paid for in in the month of puth The balance is ud for in the month following purchase Afthe 31 December 2019. N$11 700 was owing to suppliers This expects to receive a donation of 500 000 in the middle of January 2020 divery motorcycle when cost NSS 000 when purchaud second hand four years ago is trpected to be sold in March 2020 for N53 000. At the time of sale, the book value of the choryce N$1 800 7. Os future mounting to N54 500 wil be bought and paid for in February 2020 The muttercated on a straight line basis over three years tonering perces are paid in the more they are curred. Operating expenses have Month enter Note Det NS 12 300 16 900 16800 The sheeran coins include de connecting asset of 52000 por month The cash boon 2020 spect to amount to $8000 Papeals Scanned with CamScanner Marks 5 Required 5.1 Compute the purchases figure for each month from January 2020 to March 2020 Prepare a cash budget on a monthly basis in columnar format) for the period 52 January 2020 to March 2020 (Show al calculations). 53 List any three reasons why companies prepare cash budgets Total 12 3 20 END OF QUESTION PAPER