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Loudfire Safaris have requested you to prepare a cash budget for the period ending 31 March 2013. The following projections have been made for the next 4 months
December
(Rand)
January
February
March (Rand)
Credit
Purchases
10 000
15 000
18 000
25 000
Credit Sales
35 000
40 000
55 000
Additional information:
60% of the sales are collected in the month of the sale and the balance the following month.
30% of the purchases are paid for in the month of purchase, 50% in the following month and the balance in the month after.
Monthly salaries: R12 500
Advertising per month R3 600
The debit balance at the bank at end of December was R 5 000.
Required:
Prepare a cash budget statement to ascertain the cash position at the end of every month for Loudfire Safaris.
Evaluate the impact of monetary and fiscal policies and the multiplier in achieving economic goals. 1. Summarize the articles with your own words, 2. Write a short explanatio
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