Jabez Appliance Trading Company Ltd is a retail company that sells Appliances. The budget for the forthcoming period Jan

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Jabez Appliance Trading Company Ltd Is A Retail Company That Sells Appliances The Budget For The Forthcoming Period Jan 1 (41.25 KiB) Viewed 72 times

Jabez Appliance Trading Company Ltd Is A Retail Company That Sells Appliances The Budget For The Forthcoming Period Jan 2 (41.25 KiB) Viewed 72 times

Jabez Appliance Trading Company Ltd Is A Retail Company That Sells Appliances The Budget For The Forthcoming Period Jan 3 (46.85 KiB) Viewed 72 times

Jabez Appliance Trading Company Ltd is a retail company that sells Appliances. The budget for the forthcoming period January to March 31, 2023 is to be prepared. Expectations for the forthcoming period include the following - Expected Statement of Financial Position as at 31 December 2022 s ASSETS Non-current Pynt (NBV 134 3-46.500 Carret Anies Imion Account Received Marketable ore 30.000 251.000 SEK ELITIES AND LIABILIATIES Capital Share Capital Acated po 216 12162 Certi Accounts Payable Bed Pete 50 Sales data-the company's sales for December 2022 are expected to be $1,000,000 and it is expected that it will increase by 10% cach month over the previous month for the quarter ending March 31, 2023. Sales are expected to remain constant at March 31, 2023 level for the next three months. Collections - credit sales are typically 70% of total sales. Outstanding amounts from sales are normally collected as follows: 80% during the month of sale 20% during the month after sale Cost of goods sold - this is normally 70% of total sales. To have adequate stocks of inventory on hand, the company attempts to have inventory at the end of each month equal to half (50%) of the next month's projected cost of goods sold. Inventory is purchased on account and usually settled as follows: 40% during the month of purchase 3.60% during the month after purchase Other monthly expenses: Salam Advertising and Depreciation Sales 000 . . of alle

Equipment is to be purchased on January 1, 2023 for cash in the amount of $700,000. The directors have indicated an intention to declare and pay dividends of $120,000 on the last day of each quarter. h. The executives believe that the company should maintain a minimum cash balance of $100,000. If the cash balance in any month is less than $100,000, then the company can borrow to cover the shortfall. Amounts borrowed must be in multiples of $1,000 (for example, 550,000 or $51,000 but not S51,500 or 51,566). The interest rate is 10% per annum. Repayment of principal and interest must be made on the last day of each quarter. 1. Tax payable represents 20% of Profit before Tax and will be paid April 30, 2023 (after the end of the first quarter). Required: Prepare the following budgets for Jabez Enterprise by month and the quarter in total for the period ending March 31, 2023: (a) Schedule showing breakdown of sales between cash and credit (Hint: show December 2022 and April 2023 as well). (12 marks) (b) Schedule of cash collected from customers. (12 marks) te) Purchases budget (Hint: show April 2023 as well). (12 marks) (d) Schedule of cash disbursement to suppliers of products for resale. (8 marks) (e) Cash budget for the period. (28 marks) (Total = 72 marks)