Use the information provided below to prepare the following for January and February 2023: Debtors Collection Schedule a
Posted: Wed Jul 06, 2022 6:25 pm
Use the information provided below to prepare the following forJanuary and February 2023: Debtors Collection Scheduleand Cash Budget.
INFORMATION The following information was provided by IntelEnterprises:
1. The bank balance on 31 December 2022 is expected to be R40000 (unfavourable).
2. Credit sales are expected to be as follows: December2022 R576 000. January 2023 R540 000. February 2023 R648000
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 rest isusually written off as bad debts.
5. Budgeted purchases of inventory are as follows: December 2022R1 000 000. January 2023 R800 000. February 2023 R920 000
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.
INFORMATION The following information was provided by IntelEnterprises:
1. The bank balance on 31 December 2022 is expected to be R40000 (unfavourable).
2. Credit sales are expected to be as follows: December2022 R576 000. January 2023 R540 000. February 2023 R648000
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 rest isusually written off as bad debts.
5. Budgeted purchases of inventory are as follows: December 2022R1 000 000. January 2023 R800 000. February 2023 R920 000
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.