FOR QUESTIONS 29 TO 37, REFER TO
THE FOLLOWING CASE STUDY:

The
Bookkeeper of Fruits (Pty) Ltd is forecasting the company’s short-term
financing needs for the next quarter of its financial year, June 2025 to August
2025, and you, as a corporate treasury management student, have been requested
to assist in determining these needs and the possible costs of financing.

The following information
has been gathered and passed on to you:

The company sells CCTV
camera supplies for cash and on credit, leading to the constant cash flows of
cash sales and payments from debtors, with occasional large inflows from direct
sales. It is indicated that
40% of sales are paid in cash in the same month that the sales are made

Sales are split evenly
between cash and credit. The ageing report on the accounting system of the
company gives the following breakdown of collections from debtors:

20% one month after the sales have taken
place

80% two months after the sales have taken place
No bad debts.

The sales recorded for both April 2025 and May 2025 were
R600 000, respectively.
Sales are expected to increase to R800 000 in June 2025 and to
remain at this level until at least August 2025.

The company needs to make a
cash payment of R1 700 000 to a contractor for an upgrade of the company’s
systems in July.

Variable costs related to
sales equal 30% of the previous month's total sales, and the company has fixed
expenses estimated at R200,000 every month. The company had a cash balance of
R100 000 at the end of May 2025.

Fruits (Pty) Ltd uses a R1 000 000 revolving credit facility
to finance cash shortfalls, which costs 14% per month and on which interest is
paid on the closing balance of the previous month. No administrative fees are applicable. Assume 365 days per year.

REQUIRED:

Compile a cash budget for Fruits
(Pty) Ltd. for June to August 2025 and answer questions 29 to 36.

QUESTION 29

The 20% cash flow collected
one month after the sales have taken place for June, July, and August equals …
respectively.

R110 000,
R130 000, and R130 000
R120 000,
R160 000, and R160 000
R130 000,
R160 000, and R160 000
R120 000,
R130 000, and R130 000

Question

FOR QUESTIONS 29 TO 37, REFER TO
THE FOLLOWING CASE STUDY:

The
Bookkeeper of  Fruits (Pty) Ltd   is forecasting the company’s short-term
financing needs for the next quarter of its financial year, June 2025 to August
2025, and you, as a corporate treasury management student, have been requested
to assist in determining these needs and the possible costs of financing.

The following information
has been gathered and passed on to you:

The company sells CCTV
camera supplies for cash and on credit, leading to the constant cash flows of
cash sales and payments from debtors, with occasional large inflows from direct
sales. It is indicated  that
40% of sales are paid in cash in the same month that the sales are made

Sales are split evenly
between cash and credit. The ageing report on the accounting system of the
company gives the following breakdown of collections from debtors:

20% one month after the sales have taken
     place  
 
  80% two months after the sales have taken place  
  No bad debts.

The sales recorded for both April 2025 and May 2025 were
     R600 000, respectively.  
  Sales are expected to increase to R800 000 in June 2025 and to
     remain at this level until at least August 2025.

The company needs to make a
cash payment of R1 700 000 to a contractor for an upgrade of the company’s
systems in July.

Variable costs related to
sales equal 30% of the previous month's total sales, and the company has fixed
expenses estimated at R200,000 every month. The company had a cash balance of
R100 000 at the end of May 2025.

Fruits (Pty) Ltd   uses a R1 000 000 revolving credit facility
to finance cash shortfalls, which costs 14% per month and on which interest is
paid on the closing balance of the previous month.  No administrative fees are applicable. Assume 365 days per year.

REQUIRED:

Compile a cash budget for Fruits
(Pty) Ltd. for June to August 2025 and answer questions 29 to 36.

QUESTION 29

The 20% cash flow collected
one month after the sales have taken place for June, July, and August equals …
respectively.

R110 000,
     R130 000, and R130 000 
  R120 000,
     R160 000, and R160 000 
  R130 000,
     R160 000, and R160 000 
  R120 000,
     R130 000, and R130 000

Answer

R120 000, R160 000, and R160 00

Answer

R110 000, R130 000, and R130 000

Answer

R130 000, R160 000, and R160 000

Answer

R120 000, R130 000, and R130 000

Crowdly

FOR QUESTIONS 29 TO 37, REFER TO THE FOLLOWING CASE STUDY: The Bookkeeper...

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