You are required to assist the accountant of Candle Makers with the preparation of the budget for the three months ended 28 February 2021. You obtain the following information: 1. R 240 000 220 000 168 000 Actual figures Sales October 2020 November 2020 Purchases November 2020 Balances of 30 November 2020 Motor vehicles : cost : accumulated depreciation Inventories Receivables Bank Payables 480 000 80 000 100 000 221 200 30 000 92 400 2. Estimated sales December 2020 January 2021 February 2021 R 260 000 320 000 200 000 It is expected that 30% of sales will be for cash and the rest will be received from receivables as follows: 60% in the month following the sales and 40% in the next month 3. 4. Estimated purchases R December 2020 224 000 January 2021 140 000 February 2021 212 000 45% of purchases are for cash and the balance is settled in the month after purchases. Expenses - All expenses are paid monthly Salaries and wages will amount R40 000 per month. An increase of 4% is planned for December 2020. Sundry expenses excluding depreciation will amount R12 000 per month. Depreciation is calculated at 20% per year on cost. Commission on cash sales are paid on the last day of each month for that month and amounts to 2% on cash sales. 2. Estimated sales R December 2020 260 000 January 2021 320 000 February 2021 200 000 It is expected that 30% of sales will be for cash and the rest will be received from receivables as follows: 60% in the month following the sales and 40% in the next month 3 . R Estimated purchases December 2020 224 000 January 2021 140 000 February 2021 212 000 45% of purchases are for cash and the balance is settled in the month after purchases. 4. Expenses - All expenses are paid monthly Salaries and wages will amount R40 000 per month. An increase of 4% is planned for December 2020 Sundry expenses excluding depreciation will amount R12 000 per month. Depreciation is calculated at 20% per year on cost. Commission on cash sales are paid on the last day of each month for that month and amounts to 2% on cash sales. 5. Additional funds of R 200 000 will be borrowed from the bank to boost cash flow. The loan will be paid out to Candle Makers in January 2021. The instalment to repay the loan will start in March 2021.8% interest will be charged on the loan and must be included in the instalments. REQUIRED: Prepare a cash budget of Candle Makers for the months December 2020, January and February 2021. The budgeted bank balance at the end of each month must be shown. Please note: Candle Makers is NOT registered for VAT purposes. (54)