Prepare a cash budget of Tiger Limited for the months of Oct

Prepare a cash budget of Tiger Limited for the months of Oct,Nov and December. Information on image.

Tiger Limited achieved actual sales of RBO 000 in July, R75 000 in August and R70 000 in September. The company forecast sales for the following months as folows October R50 000 November R65 000 December R60 000 Additional information . The company had a cash balance of R30 000 on 1 October Of the company\'s sales, 30% are cash. Trade s (credit sales) are col as follows None during the month of sale 50% during the first month following the month of sales 30% during the second month following the month of sales 20% during the third month following the month of sales The company anticipates other income in cash as follows: October R4 000 November R12 000 December R6 000 · Credit purchases for September amounted to R70 000. The forecast for the next three months is as follows October R80 000 November R50 000 December R55 000 Of the credit purchases, 60% are paid in the month of purchase and the balance in the fol. lowing month ° Rent paid amounts to R2 500 per month · Salaries and wages amount to 20% of the previous month\'s total sales. . A cash dividend of R4 000 is paid in November . An interest payment of R4 500 is due in October e Equipment valued at R6 500 will be purchased for cash in December Tax of RS 900 is payable in ber

Solution

Cash Collection during quarter :

Purchase payments :

Cash Budget of Tiger limited :

	Oct (R)	Nov	Dec	Total (R)
Aug sales(75000*20%)	15000
Sep sales	21000	14000
Oct sales	25000	15000	10000
Nov sales		32500	19500
Dec sales			30000
Total collection	61000	61500	59500	$182000