The following budget estimates are available for Ashton Ltd., manufacturer of a single product:

Actual and projected sales:

	Cash	Credit
	R	R
January (actual)	70 800	283 200
February (actual)	72 000	288 000
March (actual)	71 400	285 600
April (budget)	68 400	273 600
May (budget)	70 800	283 200
June (budget)	72 000	288 000

Debtors on average settle their accounts as follows:

50% pay during the month following the month of sale, and are allowed a discount of 5%,

47% pay during the second month following the month of sale, and

3% prove uncollectable.

Required production is as follows:

Month	Units
March	17 900
April	17 400
May	17 850

The inventory policy of the company is to maintain closing stock of raw material at 80% of the following month's production requirements. The company uses 5 kg of raw material at a cost of R1,50 per kg, to manufacture one unit. Raw material stock at March 01, equals 72 000 kg. Sixty percent of all raw material purchases are paid within the month of purchase, and the other forty percent are paid during the month following the month of purchase. Total material purchases for February amounted to R122 440.

Wages are R4 per unit, and factory overhead R3 per unit. Factory overhead include a monthly depreciation charge of R8 000. Fixed selling and administrative expenses amount to R45 000 per month, including a depreciation charge of R3 000. Monthly variable selling and administrative expenses equal 5% of total sales for the month. Wages, factory overhead, and selling and administrative expenses are all paid during the month incurred.

Computers with a book value of R12 000 will be sold for cash during March, at a loss of R2 000. New computers will be acquired at a cost of R100 000 and would be paid for in five equal monthly instalments commencing in March.

The bank balance at March 01 amounted to R18 750.

Required:

Draw up a cash budget for the months of March and April.

(a) Calculate collections from debtors for March

R263 880

R71 400

R262 704

R10 000

None of the above

(b) Calculate proceeds from sale of comptures for March

R71 400

R10 000

R68 400

R0

None of the above

(c) Calculate total recipts for March

R332 280

R262 704

R71 400

R344 104

None of the above

(d) Calculate creditors payment for March

R127 366

R132 180

R344 104

R332 280

None of the above

(e) Calculate total payments

R127 336

R71 600

R45 700

R324 516

None of the above

(f) Calculate surplus/(deficit) for March

R7 200

R19 588

R20 000

R17 100

None of the above

(g) Calculate balance at end of March

R38 338

R40 000

R45 538

R18 750

None of the above

(h) Calculate collections from debtors for April

R68 400

R262 704

R71 400

R10 000

None of the above

(i) Calculate total receipts for April

R344 104

R332 280

R263 880

R262 704

None of the above

(j) Calculate creditors payments for April

R132 180

R127 366

R71 600

R69 200

None of the above

(k) Calculate total payments for April

R69 200

R42 000

R17 100

R20 000

None of the above

(l) Calculate surplus/(deficit) for April

R17 850

R10 000

R7 200

R8 000

None of the above

(m) Calculate balance at the end of April

R38 338

R45 538

R42 000

R44 200

None of the above