Techno-byte Ltd sells computers. At the beginning of May 2022 the asked that it be settled months and the business had a

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QUESTION TWO
Techno-byte Ltd sells computers. At the beginning of May 2022 the
asked that it be settled
montns and the
business had an overdraft of R70 000 and the bank nadu
Cesh receipts
Cash sales
Cesh payments
Cash purchase of merchandse Asmnstraton expenss
May Jun
ROGO RO00 630
630 $28
J u l Aug S e p ROO0 R000R000
O c t RO00
Loan repayments
Sebing experses 4
Shop returshment Tax paymer
Cash surpls ishorta) Openng cash baianoe Ciosng cash baiance
50 02 (14) (52) (28)(24) (TO) (20) 5 2 68 16 (12 (20 82 88 16 (12 (36)
Additional information
by the
following is the cash budgetthat was
Techno-byte Ltd
Cash Budget for the 6 months ended 31 October 2022
270
506 320
284 18S T6
10 0
2
216 264 240
150 1 3 2
43
e n d
of October
2022.
As
subsequently drawn up for the 6 months ending 31 Octoberz022.
276
492 276 236
236 216
-The business maintains a minimum monthly inventory level of R80 000 of merchandise. - The gross profit margin is 40%.
2.1 You are required to provide a detail report based on the cash budget provided by Techno-byte on what problems are likely to be faced by Techno-byte Ltd during the 6-month period from May to October 2022? Suggest ways in which the business may deal with these problems.
(25 marks)
a
result,
the
directors
decided
to
review their
t n e
n E x o
plansfor