The Endin Corporation is involved in the manufacture and retail of several high end products; the company will hold its annual budgeting exercise in November 2017 and plans to introduce the budget for the following two months. The company has not employed a cost and management accountant as yet and the finance manager has asked you to help them draft a cash budget for January 2018 and December 2017.Beaing a student of management accounting and eager to gain the experience, you agree wholeheartedly. The company provides the following Sales N$ Selling and administrative costs N$ Salaries and wages N$ November 2017 (actual) 80 000 20 000 12 000 December 2017 (projected) 100 000 11 000 14 000 January 2018 (projected) 60 000 18 000 11 000 February 2018 (projected) 70 000 19 000 9 000 Additionally, the following information is available at the end of November 2017 N$ Bank (favorable) 4 000 Debtors 32 000 Closing inventory 48 000 The company encourages debtors to pay invoices within two weeks of sales, 60% of debtors opt for this and the rest of the amount is settled within 45 days of the sale. Purchases of inventory are done at N$15 per unit and creditors are paid as follows: o 60% on delivery o the balance 30 days after the invoice. Closing inventory is calculated as 1 200 units plus 20% of the sales demand of the following month and sales are made at a mark-up of one third (1/3). Salaries and wages and selling and administration costs are paid in the month they occur and 15% of the former costs are depreciation. REQUIRED MARKS 12.1 Prepare a cash budget for December 2017 and January 2018 with all the required schedules where necessary. 25 TOTAL MARKS FOR QUESTION 4 25

N$ Sales Selling and Salaries and N$ administrative costs wages N$ November 2017 (actual) 80 000 20 0002 12 000 December 2017 100 000 11 000 14 000 (projected) January 2018 (projected) 60 000 18 000 1 1 000 February 2018 (projected) 70 000 19 000 9000 - 15% deprecially Additionally, the following information is available at the end of November 2017 N$ Bank (favorable) 4000 + Debtors 32 000 Closing inventory 48 000 Lalance The company encourages debtors to pay invoices within two weeks of sales, 60% of debtors opt for this and the rest of the amount is settled within 45 days of the sale. Purchases of inventory are done at N$15 per unit and creditors are paid as follows: o 60% on delivery o the balance 30 days after the invoice. Cuext month Closing inventory is calculated as 1 200 units plus 20% of the sales demand of the following month and sales are made at a mark-up of one third (3). Salaries and wages and selling and administration costs are paid in the month they occur and 15% of the former costs are depreciation REQUIRED MARKS 12.1 Prepare a cash budget for December 2017 and January 2018 with all the required schedules where necessary. TOTAL MARKS FOR QUESTION 4