The mark-up is 25% on cost. The goods that are sold each month are replaced in the same month. Theratio of cash purchases to credit purchases is 3:1 respectively. Creditors are paid in the month after thepurchase. Cash purchases of inventory are subject to a 10% discount.The salaries for February 2021 are expected to amount to R114 480, after an 8% increase takes effecton 01 February 2021.Interest at 15% per annum on the loan balance is paid at the end of each month. The loan balance on01 January 2021 is expected to be R200 000 and capital repayments of R20 000 are made at the end of6.7.each month.Part of the building is sublet to a tenant. The rent expense for the year ended 31 December 2020 isR131 000. The rental increases by 10% on 01 February each year. Rent is received monthly.Other operating expenses are estimated at R28 000 per month. This amount excludes R2 000 fordepreciation. Sixty percent (60%) of the operating expenses are paid for in the month in which they areincurred. The rest is paid in the following month.8.9.5. REQUIREDUse the following information provided by Ashton Enterprises to prepare the:Debtors Collection Schedule for January and February 2021.5.15.2Cash Budget for January and February 2021.Note: Where applicable, round off amounts to the nearest Rand.INFORMATION1.The bank balance on 31 December 2020 is expected to be R40 000 (favourable).2.Expected credit sales are as follows:December 2020January 2021February 2021R360 000R390 000R420 0003.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.

Name: The mark-up is 25% on cost. The goods that are sold each month are re
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: The mark-up is 25% on cost. The goods that are sold each month are replaced in the same month. Theratio of cash purchases to credit purchases is 3:1 respectively. Creditors are paid in the month after thepurchase. Cash purchases of inventory are sub

Cash budget: Cash budget is defined as the estimation made by the management in respect of the cash…

Business

Accounting

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.

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.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter9: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 8P: Financing Deficit Stevens Textile Corporation’s 2018 financial statements are shown here: Balance...

See similar textbooks

Similar questions

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…
Use the information provided below to prepare the following for November and December 2021: 1. Debtors Collection Schedule
REQUIRED Use the information provided below 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 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: 2 January March R1 500 000 R1 000 000 3. 4. 4.1 4.2 5. 6. 7. 8. 9. February R1 100 000 Cash sales usually make up 30% of the total sales. The balance of the sales is on credit. (Separate entries 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% discount 65% in the month after the sale The rest is usually written off as bad debts. Purchases from February to April 2024 are expected to be as follows: February March R320 000 R350 000 Cash purchases Credit purchases April R1 200 000 R360 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…
Prepare the debtors collection period for the four quarters of 2021
Use the information given below to prepare the following for Altech Limited for July and August 2021:1.1 Debtors Collection Schedule 1.2 Cash Budget Note: Provide separate monetary columns for each month. Where applicable, round off amounts to the nearest Rand.Information:Extract of Statement of Comprehensive Income for the month ended 30 June 2021RSales 200 000Cost of sales 100 000Rent income 8 000Advertising 4 000Salaries and wages 10 000Rates and taxes 1 200Electricity 3 000Other operating expenses 9 000Additional information:1. The business uses a fixed mark-up of 100% on cost.2. Sales are expected to increase by 10% each month.3. Thirty percent (30%) of the sales are for cash and the balance is on credit. Collections from credit sales are as follows: 40% in the month of the sale, and these customers are entitled to a 2% discount; 55% one month after the sale. The balance is usually written off as bad debts.4. Closing Inventories are kept at a constant level. 50% of purchases…
Don't give answer in image format
Please help with this question
Use the information supplied to prepare the following for Silver City Traders for the three months ending 31 March 2022. 1.1 Debtors collection schedule. 1.2 Cash budget statement.
Please use the information provided to prepare 1. Debtors Collection Schedule 2. Cash Budget
prepare debtors collection schedule for April and May 2022 prepare the cash budget for April and May 2022
Please answer in text form (without image)