The budgeted transactions of Magwitch Incorporated for the quarter ending 30 April 2022 are as follows:

i. Budgeted sales amount to R 1 152 630,98. (38 % will be sold during February 2022, 34 % during March 2022 and the rest during April 2022. 49 % of the sales are expected to be made on credit. Debtors usually pay their debt as follows:

46 % in the month following the month of sales

28 % in the second month following month of the sales

18 % in the third month following the month of the sales

8 % is written off as irrecoverable in the last month of collection

ii. Purchases is expected to amount to R 720 394,00. Assume that opening and closing inventories will remain constant and that a constant mark-up percentage is maintained throughout. 41% of all the purchases are made on credit, while creditors are paid in the month following the month in which the purchases were made.

iii. Sales personnel receive a commission of 14 % on all sales. Office personnel receive monthly salaries of

R 13 098,00 each. There are 12 office staff members. The commission and salaries are paid in cash every month.

iv. New office equipment with a hire purchase price of R 230 526,20 will be purchased on 1 February 2022. A deposit of 40 % of the HP price must be paid on 1 February 2022, and the balance must be paid in 55 equal monthly instalments beginning the 1 March 2022. R 8 538,01 depreciation is to be written off per month on this vehicle as from 1 April 2022.

v. Income tax amounting to R 26 196,00 is payable during April 2022 to SARS.

vi. Dividends of R 19 647,00, declared on 8 January 2022, must be paid during March 2022.

vii. The following balances appeared in the books of Magwitch Incorporated on 31 January 2022:

Bank (favourable) R 611 244,00

Debtors R 205 312,00

Creditors R 180 099,00

viii. Credit sales were as follows during the previous budget period:

November 2021 R180 099,00

December 2021 R 108 059,00

January 2022 R 144 079,00

Prepare Magwitch Incorporated monthly cash budget for February, March and April 2022

The budgeted transactions of Magwitch Incorporated for the quarter ending 30 April 2022 are as follows: i. Budgeted sales amount to R 1152630,98 . (38\% will be sold during February 2022, 34% during March 2022 and the rest during April 2022.49% of the sales are expected to be made on credit. Debtors usually pay their debt as follows: - 46% in the month following the month of sales - 28% in the second month following month of the sales - 18% in the third month folldwing the month of the sales - 8% is written off as irrecoverable in the last month of collection ii. Purchases is expected to amount to R720394,00. Assume that opening and closing inventories will remain constant and that a constant mark-up percentage is maintained throughout. 41% of all the purchases are made on credit, while creditors are paid in the month following the month in which the purchases were made. iii. Sales personnel receive a commission of 14% on all sales. Office personnel receive monthly salaries of R 13098,00 each. There are 12 office staff members. The commission and salaries are paid in cash every month. iv. New office equipment with a hire purchase price of R 230526,20 will be purchased on I February 2022. A deposit of 40% of the HP price must be paid on I February 2022, and the balance must be paid in 55 equal monthly instaiments beginning the 1 March 2022. R 8538,01 depreciation is to be written off per month on this vehicle as from I April 2022. v. Income tax amounting to R 26196,00 is payable during April 2022 to SARS. vi. Dividends of R19647,00, declared on 8 January 2022 , must be paid during March 2022. vii. The following balances appeared in the books of Magwitch incorporated on 31 January 2022: viii. Credit sales were as follows during the previous budget period: Prepare Magwitch Incorporated monthly cash budget for February, March and April 2022