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Techno-byte Ltd sells computers. At the beginning of May 2022 the business had an overdraft of R70 000 and the bank had asked that it be settled by the end of October 2022. As a result, the directors decided to review their plans for the next 6 months and the following is the cash budget that was subsequently drawn up for the 6 months ending 31 October 2022. Techno-byte Ltd Cash Budget for the 6 months ended 31 October 2022 May Jun Jul Aug Sep Oct R 000 000 R 000 000 R000 R000 454 630 492 236 216 454 630 492 236 216 404 528 506 264 240 270 360 284 150 132 80 82 76 62 60 when 10 10 Cash receipts Cash sales Cash payments Cash purchase of merchandise Administration expenses Loan repayments Selling expenses Shop refurbishment Tax payment Cash surplus (shortfall) ) Opening cash balance Closing cash balance 10 10 44 10 48 56 42 38 28 36 50 102 44 (14) 82 (52) (28) 16 (20) 68 (70) (20) (24) (12) (36) 82 68 16 (12) Additional information - The business maintains a minimum monthly inventory level of R80 000 of merchandise. - The gross profit margin is 40%. 2.1 (25 marks) You are required to provide a detail report based on the cash budget provided by Techno-byte on what problems are likely to be faced by Techno-byte Ltd during the 6-month period from May to October 2022? Suggest ways in which the business may deal with these problems

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