The following information relates to Padua (pty) Itd for the three months ended 31 December 2023: Sales (50% for cash) Purchases (30% for cash 70% on credit) Salaries and wages paid Other expenses Actual October R 900 000 800 000 A 25 000 15 000 Budgeted November R 1 000 000 900 000 30 000 17 000 December R 1 200 000 1 000 000 35 000 21 000

Additional Information.

• Debtors settle their accounts as follows: 50% in the month of sale, 30% in the month after the month of sale, and 15% in the second month after the month of sale while the remaining 5% are considered irrecoverable.
• Trade creditors are paid as follows: 60% in the month of purchase, 30% in the month after the purchase while the remaining 10% is paid in the second month after the purchase.
• Wages and salaries and all the other expenses are paid as they are incurred every month.
• Other expenses include depreciation of R10 000 every month. A loan of R120 000 was taken 5 years ago. Interest on the loan is 10% per annum. The annual interest expense is spread evenly through the year and is paid as it is incurred. 75% of the loan will be repaid in December 2023. The favourable bank balance at the end of October was R15 000.

Required:

Prepare the Cash Budget for the months of November and December 2023

The following information relates to Padua (pty) Itd for the three months ended 31 December 2023