REQUIREDUse the information provided below to prepare the following for March and April 2024:4.1Debtors Collection Schedule4.2 Cash BudgetINFORMATIONThe following information was provided by BN Traders:1. The bank balance on 28 February 2024 is expected to be R100 000 (unfavourable).The sales figures for the first four months of 2024 are expected to be as follows:2JanuaryMarchR1 500 000R1 000 0003.4.4.14.25.6.7.8.9.FebruaryR1 100 000Cash sales usually make up 30% of the total sales. The balance of the sales is on credit. (Separateentries are required for cash sales and collections from credit sales.)Credit sales are normally collected as follows:30% in the month of the sale, and these debtors are entitled to a 3% discount65% in the month after the saleThe rest is usually written off as bad debts.Purchases from February to April 2024 are expected to be as follows:FebruaryMarchR320 000R350 000Cash purchasesCredit purchasesAprilR1 200 000R360 000R400 000AprilR480 000R440 000The loan balance is expected to be R360 000 on 01 March 2024. Repayments of R15 000 per monthare made at the end of each month as per the loan agreement. Interest at 12% per annum on theloan balance is also payable at the end of each month.Part of the building is sublet to a tenant. The lease agreement for the year ended 31 March 2024reflected the rental at R144 000 per year, payable monthly. The rental will increase by 10% with effectfrom 01 April 2024.10. Other cash operating expenses are expected to total R150 000 for February 2024. These expensesare expected to increase by 5% each month thereafter.Sixty percent (60%) of the cash purchases is subject to a 10% cash discount. Creditors are paid inthe month after the month of purchase. (Separate entries for cash purchases and payments tocreditors are required.)The monthly salaries amount to R200 000. This includes the salary of the manager, R50 000. On 01April 2024 the salary of the manager is expected to increase by 8% and the rest of the employees by10%.

Debtors Collection Scheduled :— It is a scheduled that provides net Cash collection from the…

Answered: Use the information provided below to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the information provided by Tech Talk to prepare the following for March and April 2024: 1.1 Cash Budget 1.2 Debtors Collection Schedule INFORMATION The following information was provided by Tech Talk: 1. Tech Talk expects to have a favourable bank balance of R70 000 on 28 February 2024. 2. Budgeted sales figures for 2024 are as follows: January R420 000 R470 000 3. 4. 5. 6. 7. Cash sales Credit sales 9. February R470 000 R490 000 Total purchases March R610 000 R620 000 Thirty percent (40%) of the cash sales is to informal traders who are entitled to a discount of 20%. Collections from debtors are usually as follows: • 80% is collected in the month after the sale. 20% is collected two months after the sale. Purchases of inventory are expected to be as follows: January R310 000 February R360 000 April R650 000 R600 000 March R300 000 Sixty percent (60%) of the purchases is for cash to take advantage of a discount of 15%. The balance is purchased on credit. Creditors are paid two…
Use the information provided below to prepare the following for November and December 2021: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION The following budgeted information was provided by Sentinel Enterprises: 1. The expected bank balance on 31 October 2021 is R20 000 (favourable). 2. Credit sales are forecast as follows: October 2021 November 2021 December 2021 R280 000 R240 000 R320 000
Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows: December 2022 January 2023 February 2023 R576 000 R540 000 R648 000 3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows: December 2022 January 2023 February 2023 R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the…
Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 5. 6. 7. 8. 9. 10. INFORMATION The following information was provided by Intel Enterprises: 1. 2. Cash Budget 3. 4. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable). Credit sales are expected to be as follows: December 2022 R576 000 Credit sales are normally collected as follows: 65% in the following month January 2023 Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. The rest is usually written off as bad debts. R540 000 * 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount. December 2022 Budgeted purchases of inventory are as follows: R1 000 000 February 2023 January 2023 R648 000 R800 000 February 2023 R920 000 Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the…
Question-4 REQUIRED Use the information provided by Empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget. INFORMATION The following information was provided by Empire Traders: 1. Empire Traders expects to have a favourable bank balance of R60 000 on 28 February 2024. 2. Budgeted sales figures for 2024 are as follows: 3. 4. 5. 6. 7. Cash sales Credit sales 9. January R320 000 R370 000 Total purchases February R370 000 R390 000 March R310 000 R320 000 Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: • 80% is collected in the month after the sale. 20% is collected two months after the sale. Purchases of inventory are expected to be as follows: January February R410 000 R460 000 April R250 000 R300 000 March R400 000 April R380 000 Sixty percent (60%) of the purchases is for cash to take advantage of a discount of 15%. The balance…
REQUIRED Use the following information provided by Ashton Enterprises to prepare the: Debtors Collection Schedule for January and February 2021. 5.1 5.2 Cash Budget for January and February 2021. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION 1. The bank balance on 31 December 2020 is expected to be R40 000 (favourable). 2. Expected credit sales are as follows: December 2020 January 2021 February 2021 R360 000 R390 000 R420 000 3. Credit sales usually make up 60% of the total sales. Cash sales make up the balance. Credit sales are normally collected as follows: 20% in the month in which the transaction took place. These debtors are entitled to a 5% discount. 4. 75% in the following month. The rest is usually written off as bad debts.
REQUIRED Use the following information provided by Ashton Enterprises to prepare the: 5.1 Debtors Collection Schedule for January and February 2021. 5.2 Cash Budget for January and February 2021. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION The bank balance on 31 December 2020 is expected to be R40 000 (favourable). Expected credit sales are as follows: December 2020 R360 000 1. 2. 3. 4. 5. 6. 7. 8. 9. * * January 2021 R390 000 February 2021 R420 000 11 Credit sales usually make up 60% of the total sales. Cash sales make up the balance. Credit sales are normally collected as follows: 20% in the month in which the transaction took place. These debtors are entitled to a 5% discount. 75% in the following month. The rest is usually written off as bad debts. The mark-up is 25% on cost. The goods that are sold each month are replaced in the same month. The ratio of cash purchases to credit purchases is 3:1 respectively. Creditors are paid in the month after the…
Question 4 Use the information provided below to prepare the following for January and February 2023: Debtors Collection Schedule Cash Budget INFORMATION The following information was provided by Intel Enterprises: 3. 5. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable). Credit sales are expected to be as follows. December 2022 R576 000 January 2023 Credit sales are normally collected as follows: 65% in the following month Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. R540 000 The rest is usually written off as bad debts. 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount. December 2022 Budgeted purchases of inventory are as follows. R1 000 000 February 2023 January 2023 R648 000 R800 000 February 2023 R920 000
2022. The interest rate is 15%. 9. Equipment will be purchased on credit during March 2022 for R100 00. A deposit of 20% vill be paid during March 2022. The balance plus finance charges of R10 000 will be paid in ten equal instalments commencing April 2022. 10. Cash operating expenses are expected to amount to R30 000 for February 2022 and are expected to increase by 5% per month thereafter.
Use the information provided below to prepare the following for January and February 2023: 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 R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150…
REQUIRED Use the information provided below to prepare the following for Protea Limited for January, February and March 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION Protea Limited is in the process of formulating plans for the first quarter of 2023. 1. The following sales figures show the growth expected: Year Month 2022 December 2023 January 2023 February 2023 March 2. 3. Sales R460 000 R560 000 R640 000 R720 000 7. Forty percent (40%) of the sales is expected to be for cash and the balance is on credit. Twenty percent (20%) of the credit sales is expected to be collected in the month of the sale and 75% in the month after the sale. The remaining 5% is usually written off as bad debts. Debtors who settle their accounts in the month of the sale are entitled to a 5% discount. 4. The purchase of inventory is the company's largest expenditure and the cost of these items equals 60% of the current month's sales (excluding any discounts). Sixty percent (60%) of the…
QUESTION 4 REQUIRED Use the information provided by empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection schedule 4.2 Cash Budget INFORMATION The following information was provided by Empire Traders: 1. Empire Traders expects to have a favourable bank balance of R60 000 on 28 february 2024. 2. Budgeted sales figures for 2024 are as follows: January February March April Cash Sales R320 000 R370 000 R310 000 R 250 000 Credit Sales R370 000 R390 000 R320 000 R300 000 3. Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: 80% is collected in the month after sale 20% is collected two months after the sale 4. Purchases of inventory are expected to be as follows: January February March April Total Purchases R410 000 R460 000 R400 000 R380 000 5. Sixty percent (60) of then purchases is for cash to take advantage of a discount of 15%. The balance is purchased on…

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Use the information provided below to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget