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14. M ltd is currently preparing its cash budget for the year to 31/03/2012. An extract from its sales
budget for the same year shows the following sales values;
March
April
May
June
R120 000
R140 000
R110 000
R130 000
30% of its sales are expected to be for cash. Of its credit sales, 60% are expected to pay in the
month after sale and take a 1% discount; 35% are expected to pay in the second month after
sale and the remaining 5% are expected to be bad debts. What is the value of sales receipts to
be shown in the cash budget for May 2011?

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15. Budgeted sales of product B for the forthcoming periods are as follows;
Period number;
1
2
3
4
Budgeted sales units; 3470
3280
3970
3770
It is company policy to hold, at the end of each period, inventory which is sufficient to meet 20%
of the sales demand for the next period. What would be the budgeted production of product B
for period 3?
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