QUESTION FOUR [25] The following information pertains to Alpha Projects for the quarter ended 31 December: Invoices (20%

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Question Four 25 The Following Information Pertains To Alpha Projects For The Quarter Ended 31 December Invoices 20 1 (66.17 KiB) Viewed 27 times

QUESTION FOUR [25] The following information pertains to Alpha Projects for the quarter ended 31 December: Invoices (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation Actual October R 360 000 240 000 40 000 24 000 2 000 Budgeted November December R R 380 000 400 000 280 000 320 000 60 000 60 000 28 000 32 000 2 000 2 000 REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022 19 ADVANCED DIPLOMA IN FINANCIAL MANAGEMENT- ACADEMIC AND ASSESSMENT CALENDAR DISTANCE Additional Information: 1. It is expected that debtors will settle their accounts as follows: 20% in the month of invoice 70% in the month after the month of invoice, and 5% in the second month after the month of invoice. The remaining 5% is usually written off as bad debts. 2. Trade creditors are paid in the month after the purchases at a discount of 5%. 3.50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred. 4. Expenses are paid as they arise. 5. The favourable bank balance on 1 November was R 13 600. Required: Prepare the Cash Budget of Alpha Projects for November and December