- The Following Information Relates To Questions 6 To 14 You Are Employed As The Cost Accountant Of Prime Technologies Pt 1 (44.7 KiB) Viewed 29 times
2. Determine the total receipts for January 2022
3. Calculate the credit sales for February 2022
4. How much were the total receipts for February 2022
5. What was the difference between the total receipts in January
and the total receipts in February 2022?
6. Determine the cash sales for March 2022
7. In which month did the company attain the highest amount of
cash sales?
8. What is the difference in credit sales for February and
credit sales for March 2022?
9. How much did the company earn in total receipts from January
to March 2022?
The following information relates to questions 6 to 14 You are employed as the cost accountant of Prime Technologies (Pty) Ltd and your company operates warehouses in all provinces of South Africa. Management expects the next three months from January to March 2022 to demand some unusual cash flows. A cash balance of R 120 750 is currently on hand. 1. Sales for December 2021: R 1 450 400 2. Total sales forecasts are: R 680 000 R 950 000 January 2022 February 2022 March 2022 April 2022 R 800 200 R 892 800 3. 50% of all sales are on credit. All debtors pay in the month following the month of sales 4. The cost of goods sold averages 75% of sales. Inventory purchased during each month averages the cost of sales for the following month. The creditor payment period averages 15 days and goods are purchased consistently over the month. 5. Operating expenses are projected as follows: Salaries and wages at 12% of sales paid in the month of the sale. Other expenses at an average of 10% of sales paid in the month of the sale. Cash receipts expected from repayment of a loan to an employee of R 22 320 due in March 2022 Repayment of short-term loan of R 11 160 is due in March 2022. Repayments of long-term loans are due at R 14 880 each in January and March 2022. A new refrigerator was purchased for R 178 560 and four payments of R 50 640 each is due in February, March, April, and May 2022. • Depreciation on all equipment is written off at a rate of R 25 000 per month. Interest income from an investment of R 16 228 per month is expected. A bonus of R 230 300 is due to staff in January 2022. The company must pay tax to SARS in March 2022, R 64 080 Please Note: you will need to prepare a schedule of budgeted receipts of Prime Technologies (Pty) Ltd for the months January, February, and March 2022 before attempting to answer the questions below: