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Question - B Ltd. has given you the following information to prepare its cash budget for December 2014.
Below is a summary of the past and expected future sales (all values in R):
October - R80 000
November - R70 000
December - R100 000
50% of sales are on credit.
40% of credit sales are collected in the month of sale and the remainder in the month thereafter.
Purchases amount to 60% of sales.
All purchases are on credit.
50% of purchases are paid in the first month following the month of purchase and the remainder is settled in the second month after the month of purchase.
What will the total cash receipts for December be (taking credit sales into account)?
A. R41 000
B. R50 000
C. R91 000
D. R73 000
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