Use the information provided below to prepare the Cash Budget for October, November, and December 2021. Provide separate monetary columns for each month. INFORMATION 1. The following data and estimates are available for a project of Fego Limited for September to December 2021: September October November December R R R R Sales 130 000 110 000 120 000 140 000 Wages 40 000 34 000 38 000 39 000 Fixed overheads 16 000 16 000 16 000 16 000 Variable overheads 16 000 13 000 15 000 17 000 Materials purchases 17 000 14 000 16 000 18 000 2. Sixty percent (60%) of the sales are expected to be for cash and the balance on credit. Credit customers usually pay in the month after the sale. 3. Labour costs are paid for in the month in which they are incurred. 4. Fixed overheads include R5 000 each month for depreciation and payment is made monthly. 5. Variable overheads are paid for in the month after they are incurred. 6. Direct materials are purchased by electronic funds transfers each month. 7. The cash balance on 01 October 2021 is expected to be R30 000. 8. Ten percent (10%) of the sales for December 2021 will be invested in an interest-bearing account for a period of six months. Interest will be received upon maturity.
Use the information provided below to prepare the Cash Budget for October, November, and December 2021. Provide separate monetary columns for each month. INFORMATION 1. The following data and estimates are available for a project of Fego Limited for September to December 2021: September October November December R R R R Sales 130 000 110 000 120 000 140 000 Wages 40 000 34 000 38 000 39 000 Fixed overheads 16 000 16 000 16 000 16 000 Variable overheads 16 000 13 000 15 000 17 000 Materials purchases 17 000 14 000 16 000 18 000 2. Sixty percent (60%) of the sales are expected to be for cash and the balance on credit. Credit customers usually pay in the month after the sale. 3. Labour costs are paid for in the month in which they are incurred. 4. Fixed overheads include R5 000 each month for depreciation and payment is made monthly. 5. Variable overheads are paid for in the month after they are incurred. 6. Direct materials are purchased by electronic funds transfers each month. 7. The cash balance on 01 October 2021 is expected to be R30 000. 8. Ten percent (10%) of the sales for December 2021 will be invested in an interest-bearing account for a period of six months. Interest will be received upon maturity.
Use the information provided below to prepare the Cash Budget for October, November, and December 2021. Provide separate monetary columns for each month. INFORMATION 1. The following data and estimates are available for a project of Fego Limited for September to December 2021: September October November December R R R R Sales 130 000 110 000 120 000 140 000 Wages 40 000 34 000 38 000 39 000 Fixed overheads 16 000 16 000 16 000 16 000 Variable overheads 16 000 13 000 15 000 17 000 Materials purchases 17 000 14 000 16 000 18 000 2. Sixty percent (60%) of the sales are expected to be for cash and the balance on credit. Credit customers usually pay in the month after the sale. 3. Labour costs are paid for in the month in which they are incurred. 4. Fixed overheads include R5 000 each month for depreciation and payment is made monthly. 5. Variable overheads are paid for in the month after they are incurred. 6. Direct materials are purchased by electronic funds transfers each month. 7. The cash balance on 01 October 2021 is expected to be R30 000. 8. Ten percent (10%) of the sales for December 2021 will be invested in an interest-bearing account for a period of six months. Interest will be received upon maturity.
Use the information provided below to prepare the Cash Budget for October, November, and December 2021. Provide separate monetary columns for each month. INFORMATION 1. The following data and estimates are available for a project of Fego Limited for September to December 2021: September October November December R R R R Sales 130 000 110 000 120 000 140 000 Wages 40 000 34 000 38 000 39 000 Fixed overheads 16 000 16 000 16 000 16 000 Variable overheads 16 000 13 000 15 000 17 000 Materials purchases 17 000 14 000 16 000 18 000 2. Sixty percent (60%) of the sales are expected to be for cash and the balance on credit. Credit customers usually pay in the month after the sale. 3. Labour costs are paid for in the month in which they are incurred. 4. Fixed overheads include R5 000 each month for depreciation and payment is made monthly. 5. Variable overheads are paid for in the month after they are incurred. 6. Direct materials are purchased by electronic funds transfers each month. 7. The cash balance on 01 October 2021 is expected to be R30 000. 8. Ten percent (10%) of the sales for December 2021 will be invested in an interest-bearing account for a period of six months. Interest will be received upon maturity.
Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.
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