Subject: Retail Finance

1. Complete the debtor’s collection schedule of ABC Traders for the period April 01 to May 31.

ABC TRADERS
Debtor’s Collection Schedule from April 1 to May 30
Month Credit Sales April May
February 29,500,000 5,310,000
March 32,500,000 19,500,000 5,850,000
April 28,500,000 5,415,000 17,100,000
May 34,500,000 6,555,000

Cash from Debtors 30,250,000 29,505,000

2. Prepare the Cash Budget of ABC Traders for the period of April 01 to May 31.

ABC TRADERS
Cash Budgets for the months April 1 to May 30
April May
Cash Receipts
Cash Sales 27,500,000 36,000,000
Cash from Debtors 30,225,000 29,505,000
Fixed Deposit 45,000,000
Interest on Fixed Deposit 4,000,000
Total Receipts 57,725,000 114,505,000

Cash Payments
Cash Purchases 32,400,000 14,700,000
Payments to Creditors 15,450,000 14,800,000
Operating Expenses 7,600,000 7,980,000
Drawings 30,000 30,000
Vehicles 5,300,000
Total Payments 60,780,000 37,510,000

Net Cash Flows

Net cash flow (NCF) for Month: (3,055,000) 76,995,000
Cumulative NCF (3,055,000) 73,940,000

Cash Surplus
Cash Balance 18,400,000 15,345,000
Surplus Cash 15,345,000 89,285,000