Question 4 Use the information provided below to prepare the following 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 R40 000 (unfavourable). 2. Credit sales are expected to be as follows: December 2022 January 2023 R576 000 R540 000 February 2023 R648 000 3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers
Question 4 Use the information provided below to prepare the following 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 R40 000 (unfavourable). 2. Credit sales are expected to be as follows: December 2022 January 2023 R576 000 R540 000 February 2023 R648 000 3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers
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![Question 4
Use the information provided below to prepare the following 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 R40 000 (unfavourable).
2. Credit sales are expected to be as follows:
December 2022
January 2023
R576 000
R540 000
3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers
receive a 10% discount.
* 65% in the following month
The rest is usually written off as bad debts.
5. Budgeted purchases of inventory are as follows:
December 2022
January 2023
R1 000 000
February 2023
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.
R648 000
R800 000
February 2023
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 000. Salaries are expected to increase by 9% with effect from 01
February 2023 for those employees who presently make up 80% of the salary bill. The salaries of the
remaining 20% are expected to increase by 6%.
8. Interest at 18% per annum on the loan balance is paid at the end of each month. The loan balance on
31
December 2022 was R400 000 and a capital repayment of R100 000 will be made on 01 February 2023.
9. Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the
year
ended 31 January 2023 reflected the rental as R180 000 per annum. The rental will 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 expenses are paid for in the month in which they are incurred.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d682e75-3d83-4664-bc4a-ca1ef91c429f%2Faffc11e2-122f-46ad-83e3-1cab21bc6587%2F5sjilkr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 4
Use the information provided below to prepare the following 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 R40 000 (unfavourable).
2. Credit sales are expected to be as follows:
December 2022
January 2023
R576 000
R540 000
3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers
receive a 10% discount.
* 65% in the following month
The rest is usually written off as bad debts.
5. Budgeted purchases of inventory are as follows:
December 2022
January 2023
R1 000 000
February 2023
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.
R648 000
R800 000
February 2023
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 000. Salaries are expected to increase by 9% with effect from 01
February 2023 for those employees who presently make up 80% of the salary bill. The salaries of the
remaining 20% are expected to increase by 6%.
8. Interest at 18% per annum on the loan balance is paid at the end of each month. The loan balance on
31
December 2022 was R400 000 and a capital repayment of R100 000 will be made on 01 February 2023.
9. Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the
year
ended 31 January 2023 reflected the rental as R180 000 per annum. The rental will 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 expenses are paid for in the month in which they are incurred.
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