Neha Wholesalers supplied you with the following projected information: 1. Expected sales are as follows: August R350 000 September R280 000 October R300 000 2. Cash sales are expected to be 50% of total sales. The balance is on credit. 3. Debtors are expected to settle their accounts as follows: 40% in the month of the sale 60% one month after the sale 4. Expected purchases are as follows: August R100 000 September R 40 000 October R 50 000 5. All purchases are on credit. Creditors are paid one month after the purchases less 10% discount. 6. Rent expenses amount to R7 000 per month, Rent will increase by 15% from 1 October. 7. Selling expenses are expected at 1% of total sales and are paid during the month of sales. 8. Insurance amounts to R360 000 per annum, payable monthly. 9. The owner intends making a cash drawings of R5 000 each month. 10. Interest on fixed deposit of R2 000 is due on 1 September. 11. The bank balance on 31 July is expected to be R25 000 favourable. Required: 1.1 The Debtors collection schedule for August, September and October. 1.2 The Cash budget statement for August, September and October.
Neha Wholesalers supplied you with the following projected information:
1. Expected sales are as follows:
August R350 000
September R280 000
October R300 000
2. Cash sales are expected to be 50% of total sales. The balance is on credit.
3. Debtors are expected to settle their accounts as follows:
40% in the month of the sale
60% one month after the sale
4. Expected purchases are as follows:
August R100 000
September R 40 000
October R 50 000
5. All purchases are on credit. Creditors are paid one month after the purchases less 10%
discount.
6. Rent expenses amount to R7 000 per month, Rent will increase by 15% from 1 October.
7. Selling expenses are expected at 1% of total sales and are paid during the month of sales.
8. Insurance amounts to R360 000 per annum, payable monthly.
9. The owner intends making a cash drawings of R5 000 each month.
10. Interest on fixed deposit of R2 000 is due on 1 September.
11. The bank balance on 31 July is expected to be R25 000 favourable.
Required:
1.1 The Debtors collection schedule for August, September and October.
1.2 The
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