Prepare cash budget for the 6 months to December 31, 2021 for presentation to your bank manager who you hope will be prepared to give you an overdraft facility to supplement the R20,000 you intend introducing into your business (a) Calculate the net cashflow for December.
Question 11
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You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.
R R Unit selling price 160 Less: Direct materials 50 Direct labour 30 Fixed Admin 4.00 Rent 7.50 Rates 2.50 Mark up 65
Your initial plan is to produce 200 units per month and to start selling in August 2021. The August September October November December Unit 50 80 120 180 200 All sales will be made on 30 days credit.
Machinery will cost you R24, 000. This you propose financing on hire purchase terms; deposit payable July 1, 2021, R2,400; followed by 24 monthly instalments of R1,000 each. Raw materials suppliers will deliver an equal amount of parts at the beginning of each month. They will allow you 60 days credit.
Wages and administrative expenses will be paid in the month in which they are incurred. Rent and rates of the premises will be paid quarterly in advance commencing on July1, 2021. REQUIRED: Prepare (a) Calculate the net cashflow for December. |
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Question 12
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Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data: Variable cost per unit: Direct material R30 Direct labour R45 Manufacturing overheads R75 Sales commission R15 Selling expenses R23 Total fixed costs Depreciation - factory R27 000 Depreciation - administration R45 000 Rent - factory R31 500 Rent - head office R22 500 Selling and administration cost R60 000 Required: (c) Calculate the selling price if the company adds mark-up of 82% on variable |
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