Reference no: EM132683088

Below are Actual and Budgeted sales figures:

Feb.               Mar.                  Apr.                  May                 Jun.            Jul.              Aug.                        Sep.               Oct.

R45 000         R24 000      R57 000         R38 000          R75 000     R41 000        R68 000              R73 000        R30 000

60% credit     65% credit      40% cash    75% cash      55% cash     70% credit     40% credit           60%           credit 50%

• credit On the 1 July 2018 there was a bank balance of R60 700.

Debtors payment is follows:

40% in month of sale, 50% in first month after the month of sale and 10% in second month after the month of sale.

Details

                                                    July 2018                    August 2018

Commission Income                           R14 000                       R11 000

Depreciation on equipment                         -                           R8 000

Labour Costs                                        R33 000                        R29 000

Raw Material                                           R26 400                         R28 100

Manufacturing Overheads                            R7 000                         R5 500

Non-Manufacturing Overheads                           R4 800               R6 100

Expenses are paid for in cash. Financial year-end is 31 August 2018.

Required:

Problem 1: Sales budget for the months of 30 June 2018 to 31 August 2018. Prepare the Cash budget for the months of 31 July 2018 to 31 August 2018.