Extract from the Cash Budget. Comparison of budgeted figures to actual figures for December 2026.

Question

ScanSolve AI Tutor · Accepted Answer

Here are the calculations for the missing values in the Cash Budget:

a) Cash sales for November: The expected average sales per customer is R7 000. The expected number of customers for November is 90.
$\text{Cash sales for November} = \text{Expected average sales per customer} \times \text{Expected number of customers}$ $\text{Cash sales for November} = \text{R}7\,000 \times 90$ $\text{Cash sales for November} = \text{R}630\,000$
The value for (a) is $\boxed{\text{R}630\,000}$ .
b) Additional loan from Bloom Bank for November: There is no information provided in the problem description (Section F) or the tables (Section G, H) regarding an additional loan from Bloom Bank for November. Therefore, we assume no additional loan was received in November. The value for (b) is $\boxed{\text{R}0}$ .
c) Salaries of sales assistants for November: The total salaries for sales assistants in October were R22 400 for 80 customers. The problem states: "This sales assistant will earn a monthly salary that will be 20% lower than the salary earned by each sale assistant during October." This implies that the individual salary rate for sales assistants is reduced by 20% from November. We assume the number of sales assistants is proportional to the number of customers.

Calculate the total salaries for November based on the increase in customers, using the October rate.

$$
\text{Proportional salaries (old rate)} = \frac{\text{Customers in November}}{\text{Customers in October}} \times \text{Salaries in October}
$$
$$
\text{Proportional salaries (old rate)} = \frac{90}{80} \times \text{R}22\,400
$$
$$
\text{Proportional salaries (old rate)} = 1.125 \times \text{R}22\,400 = \text{R}25\,200
$$

Apply the 20% reduction to the proportional salaries from November.
$$ \text{Salaries for November} = \text{Proportional salaries (old rate)} \times (1 - 0.20) $$ $$ \text{Salaries for November} = \text{R}25\,200 \times 0.80 $$ $$ \text{Salaries for November} = \text{R}20\,160 $$ The value for (c) is $\boxed{\text{R}20\,160}$.
- d) Rent expense for October: From Section F, rent increased by 11% p.a. commencing on 1 November. This means the October rent is at the old rate. From Section G, the rent expense for November and December is R39 960. This amount includes the 11% increase.

Calculate the rent expense before the 11% increase.

Let $R_{old}$ be the rent expense before the increase.
$$
R_{old} \times (1 + 0.11) = \text{R}39\,960
$$
$$
R_{old} \times 1.11 = \text{R}39\,960
$$
$$
R_{old} = \frac{\text{R}39\,960}{1.11}
$$
$$
R_{old} = \text{R}36\,000
$$

The rent expense for October is the old rate.

$$
\text{Rent expense for October} = \text{R}36\,000
$$
The value for (d) is $\boxed{\text{R}36\,000}$.

Extract from the Cash Budget. Comparison of budgeted figures to actual figures for December 2026.

Step-by-step solution

Calculate the total salaries for November based on the increase in customers, using the October rate.

Apply the 20% reduction to the proportional salaries from November.

Calculate the rent expense before the 11% increase.

The rent expense for October is the old rate.

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