The following information pertains to Yoyo Projects for the three months ended 31 May 2020:       Actual Budgeted   March R April R May R Revenue (20% for cash and 80% on credit) 360 000 380 000 400 000 Purchases (10% for cash 90% on credit) 240 000 280 000 320 000 Salaries and wages paid 40 000 60 000 60 000 Cash expenses 24 000 28 000 32 000 Depreciation 2 000 2 000 2 000   Additional Information: It is expected that debtors will settle their accounts as follows: 20 % in the month of invoice 70% in the month after the month of invoice, and 5% in the second month after the month of invoice The remaining 5% is usually written off as bad Trade creditors are paid in the month after purchase at a discount of 5%. 50% of the salaries and wages are weekly wages. Since wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were Expenses are paid as they The favourable bank balance on 1 April 2020 was R 21 Required Prepare the Cash Budget of Yoyo Projects for April and May 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

The following information pertains to Yoyo Projects for the three months ended 31 May 2020:

 

 

 

Actual

Budgeted

 

March

R

April

R

May

R

Revenue (20% for cash and 80% on

credit)

360 000

380 000

400 000

Purchases (10% for cash 90% on credit)

240 000

280 000

320 000

Salaries and wages paid

40 000

60 000

60 000

Cash expenses

24 000

28 000

32 000

Depreciation

2 000

2 000

2 000

 

Additional Information:

  1. It is expected that debtors will settle their accounts as follows:
    • 20 % in the month of invoice
    • 70% in the month after the month of invoice, and
    • 5% in the second month after the month of invoice
    • The remaining 5% is usually written off as bad
  2. Trade creditors are paid in the month after purchase at a discount of 5%.
  3. 50% of the salaries and wages are weekly wages. Since wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were
  4. Expenses are paid as they
  5. The favourable bank balance on 1 April 2020 was R 21

Required

Prepare the Cash Budget of Yoyo Projects for April and May 2020.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education