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1. You are asked to draw up the sales budget of Crazy Times (Pty) Ltd. The following information must be taken into account:

1. Determine the expected sales using the following information for 2019. [Table 4 page 9]
   • The sales for 2021 is R 5 286 803 and would like to increase it by 15%
   • The unit / selling price for the year is R120
   • Round up the units produced to for the quarter to the next whole number. (2)

2. Determine the expected cash collection for quarter one of 2022, if: [Table 5: page 9]
   • 25% will be cash and 75% will be on credit
   • The credit sales will be collected as follows:
     1. 60% (30 days)
     2. 40% (60 days) (3)

3. Complete the template to determine the sales budget per quarter using the information collected: [Table 6: page 9]
   • You determined that the expected sales would be 15 000 units for the first quarter, increasing by 250 units per quarter for 2022.
   • 25% of sales were cash and 75% were on credit.
   • Debtors would pay 30days after purchase.
   • The outstanding debts at the beginning of the year should all be collected in the first period. (10)

4. Suppose that you have decided that you want to manufacture 15% for future quarters stock in the preceding quarter and have it on the shelves in advance. Complete a Production budget, using the template provided, with the following information for 2022: [Table 7: page 10]
   • Opening stock (15%)
   • Closing stock (15%)
   • Direct material purchases are paid 50% cash in the quarter of purchase and 50% in the following quarter (30days).
   • Creditors or accounts payable will be paid at the beginning of the year and will be paid in full in the first quarter. (10)

Table 4: Expected Sales for Crazy Times (Pty) Ltd - 2022 Q1 Q2 Q3 Q4 a. b. Table 5: Expected Cash Collected for Crazy Times (Pty) Ltd - 2022 Month 1 Cash sales Credit Sales 30 days 60 days Sales Budget for Crazy Times (Pty) Ltd - 2022 1 15000 15250 120 120 A B F R 450 000 R 457 500 R 1 350 000 R 1807 500 R 670 193 J Table 6: Expected Sales Unit Pirce CASH COLLECTIONS Balance b/f Cash Sales Credit Sales Total Cash Debtors 2 15500 120 C R R R 465 000 1 372 500 1 837 500 3 2 Total 15750 120 D R 472 500 R 1 395 000 R 1867 500 4 (Marks 2) 3 (Marks 3) Year 61500 120 E G H J Table 7: Production Budget for Crazy Times (Pty) Ltd - 2022 Expected sales (in units) Less: opening Stock Plus: closing stock Number of units to produce Material purchases: units x R12,00 Material payment: Balance b Cash Credit Total payments Creditors 15000 2250 2288 R 180 450 F R 90 225 R 429 475 J 1 2 15250 2288 2325 B R 183 450. R 91 725 R 90 225 R 181 950 15500 2325 2363 R 186 450 R 93 225 R 91 725 R 184 950 3 Marks (10) 15750 2363 2401 D R 189 456 R 94 728 R 93 225 R 187 953 4 Year 61500 2100 2251 E R 739 812 G H

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