Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedu
Posted: Tue Jul 05, 2022 11:25 am
Use the information provided below to prepare thefollowing for January and February 2023:
4.1 Debtors Collection Schedule
4.2 Cash Budget
INFORMATION
The following information was provided by Intel Enterprises:
1. The bank balance on 31 December 2022 is expected to be R40000 (unfavourable).
2. Credit sales are expected to be as follows:
3. Credit sales usually make up 40% of the total sales. Cashsales make up the balance. Cash customers receive a 10%discount.
4. Credit sales are normally collected as follows: * 30% in themonth in which the transaction takes place, and these customers areentitled to a 5% discount. * 65% in the following month. The restis usually written off as bad debts.
5. Budgeted purchases of inventory are as follows:
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 areexpected to increase by 9% with effect from 01 February 2023 forthose employees who presently make up 80% of the salary bill. Thesalaries of the remaining 20% are expected to increase by 6%.
8. Interest at 18% per annum on the loan balance is paid at theend of each month. The loan balance on 31 December 2022 was R400000 and a capital repayment of R100 000 will be made on 01 February2023.
9. Part of the building is sublet to a tenant and rent iscollected monthly. The lease agreement for the year ended 31January 2023 reflected the rental as R180 000 per annum. The rentalwill increase by 10% with effect from 01 February 2023.
10. Other operating expenses are budgeted at R40 000 per month.This amount includes R5 000 for depreciation. Operating expensesare paid for in the month in which they are incurred.
4.1 Debtors Collection Schedule
4.2 Cash Budget
INFORMATION
The following information was provided by Intel Enterprises:
1. The bank balance on 31 December 2022 is expected to be R40000 (unfavourable).
2. Credit sales are expected to be as follows:
3. Credit sales usually make up 40% of the total sales. Cashsales make up the balance. Cash customers receive a 10%discount.
4. Credit sales are normally collected as follows: * 30% in themonth in which the transaction takes place, and these customers areentitled to a 5% discount. * 65% in the following month. The restis usually written off as bad debts.
5. Budgeted purchases of inventory are as follows:
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 areexpected to increase by 9% with effect from 01 February 2023 forthose employees who presently make up 80% of the salary bill. Thesalaries of the remaining 20% are expected to increase by 6%.
8. Interest at 18% per annum on the loan balance is paid at theend of each month. The loan balance on 31 December 2022 was R400000 and a capital repayment of R100 000 will be made on 01 February2023.
9. Part of the building is sublet to a tenant and rent iscollected monthly. The lease agreement for the year ended 31January 2023 reflected the rental as R180 000 per annum. The rentalwill increase by 10% with effect from 01 February 2023.
10. Other operating expenses are budgeted at R40 000 per month.This amount includes R5 000 for depreciation. Operating expensesare paid for in the month in which they are incurred.