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QUESTION FOUR The following information for the 2021 financial year is available for ABH...

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Accounting

QUESTION FOUR
The following information for the 2021 financial year is available for ABH Enterprises Ltd:
Additional information:
(a) Credit sales are collected as follows:
50% within 30 days (the next month)
25% within 60 days
15% within 90 days
10% uncollectible (bad debt)
(b) The following discount is given on sales:
10% on all cash sales
5% on credit sales paid within 30 days
Salaries, wages and other expenses are paid in cash.
(c) Other expenses include depreciation of R4000 per month. 55% of all purchases are on
credit and are paid for in the following month. The rest represents cash purchases. The
bank balance on 1 June 2021 is R200000. A dividend of R3000 will be declared on 31
August 2021.
Required:
Prepare the cash budget for the period 1 June to 31 August 2021.
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