Question 4 Use the information provided below to prepare thefollowing for January and February 2023:
4.1 Debtors Collection Schedule (4 marks)
4.2 Cash Budget (16 marks)
INFORMATION The following information was provided by IntelEnterprises: 1. The bank balance on 31 December 2022 is expected tobe R40 000 (unfavourable).
2. Credit sales are expected to be as follows:
Question 4 Use The Information Provided Below To Prepare The Following For January And February 2023 4 1 Debtors Collec 1 (56.12 KiB) Viewed 15 times
3. Credit sales usually make up 40% of the total sales. Cashsales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and thesecustomers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:
Question 4 Use The Information Provided Below To Prepare The Following For January And February 2023 4 1 Debtors Collec 2 (55.58 KiB) Viewed 15 times
6. Fifty percent (50%) of the purchases are for cash. Theremainder is paid in the month after the purchase.7. The monthly salaries amount to R150 000. Salaries are expectedto increase by 9% with effect from 01February 2023 for those employees who presently make up 80% of thesalary bill. The salaries of theremaining 20% are expected to increase by 6%.8. Interest at 18% per annum on the loan balance is paid at the endof each month. The loan balance on 31December 2022 was R400 000 and a capital repayment of R100 000 willbe made on 01 February 2023.9. Part of the building is sublet to a tenant and rent is collectedmonthly. The lease agreement for the yearended 31 January 2023 reflected the rental as R180 000 per annum.The rental will increase by 10% witheffect from 01 February 2023.10. Other operating expenses are budgeted at R40 000 per month.This amount includes R5 000 fordepreciation. Operating expenses are paid for in the month in whichthey are incurred.
December 2022 R576 000 January 2023 R540 000 February 2023 R648 000
December 2022 R1 000 000 January 2023 R800 000 February 2023 R920 000
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