Prepare the cash budget of Louw Traders

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Question - The following is the budgeted information of Louw Traders: BUDGET 2020 Total Sales R March 900 000 April 1 050 000 May 1 140 000 June 1 200 000 Collections: 40% of sales are cash sales while 35% is collected one month after the sale and the remaining 25% is collected two months after the sale has taken place. Expenses: The expenses are expected to be maintained at 55% of the same month's sales. Payments: 75% of expenses are paid in cash and 25% are paid one (1) month after incurring the expense. Opening cash balance: The business opening May cash balance is R30 000 Minimum cash balance requirement: The business requires a minimum cash balance of R15 000.

Required - Prepare the cash budget of Louw Traders for the months of May and June 2020.

Reference no: EM132604657

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