QUESTION 1 REQUIRED Prepare the Cash Budget for a project of Aston Enterprises for the period 01 May 2021 to 31 July 2021. (Ensure that your cash budget has separate monetary columns for each month.)...

Extracted text: QUESTION 1 REQUIRED Prepare the Cash Budget for a project of Aston Enterprises for the period 01 May 2021 to 31 July 2021. (Ensure that your cash budget has separate monetary columns for each month.) INFORMATION The following information was provided by Aston Enterprises: 1. The bank balance on 30 April 2021 is expected to be R50 000 (favourable). 2. Expected sales (excluding discounts) are as follows: April May June July R R R. R Cash sales 100 000 120 000 160 000 170 000 Credit sales 140 000 150 000 180 000 230 000 3. A discount of 5% is given to customers on cash sales. 4. Customers who purchase on credit usually pay one month after the sale. 5. The production estimates reveal the following: Production costs March April May June July R R R R R Direct materials 75 000 77 000 45 000 55 000 60 000 Direct labour 32 000 35 000 36 000 39 000 41 000 Overheads 25 000 27 000 29 000 33 000 35 000


Extracted text: 6. Fifty percent (50%) of the materials purchases are for cash. The balance is purchased on credit and creditors are usually paid two months after the purchase. 7. Employees involved in the production of finished goods are paid monthly. 8. The payment of production overheads is delayed by one month. 9. Selling and administrative costs are paid for in the month in which they are incurred. They are forecast at 10% of sales (excluding any discounts). 10. A loan of R300 000 is expected to be obtained on 01 July 2021. Loan repayments of RS 000 per month plus interest at 12% per annum is payable at the end of each month commencing July 2021.