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
(Rand)
|
February
(Rand)
|
March (Rand)
|
|
Credit
Purchases
|
10 000
|
15 000
|
18 000
|
25 000
|
|
Credit Sales
|
25 000
|
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.