Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedu
Posted: Tue Jul 05, 2022 11:24 am
Use the information provided below to prepare the following forJanuary and February 2023:
4.1 Debtors Collection Schedule (4 marks) 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 asfollows: December 2022 January 2023 February 2023 R576 000 R540 000R648 000 3. Credit sales usually make up 40% of the total sales.Cash sales make up the balance. Cash customers receive 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 followingmonth The rest is usually written off as bad debts. 5. Budgetedpurchases of inventory are as follows: December 2022 January 2023February 2023 R1 000 000 R800 000 R920 000 4.2 6. Fifty percent(50%) of the purchases are for cash. The remainder is paid in themonth after the purchase. 7. The monthly salaries amount to R150000. Salaries are expected to increase by 9% with effect from 01February 2023 for those employees who presently make up 80% of thesalary bill. The salaries of the remaining 20% are expected toincrease by 6%. 8. Interest at 18% per annum on the loan balance ispaid at the end of each month. The loan balance on 31 December 2022was R400 000 and a capital repayment of R100 000 will be made on 01February 2023. 9. Part of the building is sublet to a tenant andrent is collected monthly. The lease agreement for the year ended31 January 2023 reflected the rental as R180 000 per annum. Therental will increase by 10% with effect from 01 February 2023. 10.Other operating expenses are budgeted at R40 000 per month. Thisamount includes R5 000 for depreciation. Operating expenses arepaid for in the month in which they are incurred.
4.1 Debtors Collection Schedule (4 marks) 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 asfollows: December 2022 January 2023 February 2023 R576 000 R540 000R648 000 3. Credit sales usually make up 40% of the total sales.Cash sales make up the balance. Cash customers receive 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 followingmonth The rest is usually written off as bad debts. 5. Budgetedpurchases of inventory are as follows: December 2022 January 2023February 2023 R1 000 000 R800 000 R920 000 4.2 6. Fifty percent(50%) of the purchases are for cash. The remainder is paid in themonth after the purchase. 7. The monthly salaries amount to R150000. Salaries are expected to increase by 9% with effect from 01February 2023 for those employees who presently make up 80% of thesalary bill. The salaries of the remaining 20% are expected toincrease by 6%. 8. Interest at 18% per annum on the loan balance ispaid at the end of each month. The loan balance on 31 December 2022was R400 000 and a capital repayment of R100 000 will be made on 01February 2023. 9. Part of the building is sublet to a tenant andrent is collected monthly. The lease agreement for the year ended31 January 2023 reflected the rental as R180 000 per annum. Therental will increase by 10% with effect from 01 February 2023. 10.Other operating expenses are budgeted at R40 000 per month. Thisamount includes R5 000 for depreciation. Operating expenses arepaid for in the month in which they are incurred.