QUESTION THREE Manama Projects Inc, sells all kinds of mining equipment. The proprietor has supplied you with the follow

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Question Three Manama Projects Inc Sells All Kinds Of Mining Equipment The Proprietor Has Supplied You With The Follow 1 (122.16 KiB) Viewed 9 times

QUESTION THREE Manama Projects Inc, sells all kinds of mining equipment. The proprietor has supplied you with the following information. INFORMATION: 1. Actual and projected amounts: Details Cash sales Credit sales Cash purchases Credit purchases ACTUAL March 2021 52 000 208 000 40 000 90 000 April 2021 84 000 336 000 50 000 180 000 2. Credit sales are collected as follows from debtors: 10% in the second month after the sales. PROJECTIONS May 2021 76 000 394 000 45 000 150 000 • 20% in the month of the sales less 6% discount allowed for prompt payment. • 70% in the month after the sales. • June 2021 72 000 288 000 3. Creditors are paid in full in the month following the purchase and earn 10% discount for early settlement. 6. Projected other income is as follows: May, R17 200 June, R30 000 7. The proprietor has approved the following sponsorships to his former school: • R20 000 for their Swimming Gala in May 2021. • R25 000 for their Annual Sports Day in June 2021. 43 000 100 000 4. The monthly rent income will decrease by R 2000 with effect from 01 June 2021. 5. A loan of R100 000 at 9%p.a. from NMB Bank has been approved and will be deposited directly into the business bank account on 01 June 2021. 8. The following amounts have been projected for Selling and Administration costs: R120 000 for May and R80 000 for June. REQUIRED: 3.1 The Debtors Collection Schedule for the period, 01 May to 30 June 2021. 3.2 The Cash Budget for the period 01 May to 30 June 2021. 9. Projected salaries for May, R123 000 and an increase of R17 000 for June. 10. The expected bank balance on 01 May 2021 is an overdraft of R 2 000