Use the information provided below to prepare the following for January and February 2023:4.1Debtors Collection Schedule4.25.6.7.8.9.10.INFORMATIONThe following information was provided by Intel Enterprises:1.2.Cash Budget3.4.The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).Credit sales are expected to be as follows:December 2022R576 000Credit sales are normally collected as follows:65% in the following monthJanuary 2023Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive 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 2022Budgeted purchases of inventory are as follows:R1 000 000February 2023January 2023R648 000R800 000February 2023R920 000Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with effect from 01February 2023 for those employees who presently make up 80% of the salary bill. The salaries of theremaining 20% are expected to increase by 6%.Interest at 18% per annum on the loan balance is paid at the end of each month. The loan balance on 31December 2022 was R400 000 and a capital repayment of R100 000 will be made on 01 February 2023.Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the yearended 31 January 2023 reflected the rental as R180 000 per annum. The rental will increase by 10% witheffect from 01 February 2023.Other operating expenses are budgeted at R40 000 per month. This amount includes R5 000 fordepreciation. Operating expenses are paid for in the month in which they are incurred.

Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 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 January 2023 R540 000 February 2023 Credit sales are normally collected as follows: R648 000 Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. * 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.

Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 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 January 2023 R540 000 February 2023 Credit sales are normally collected as follows: R648 000 Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. * 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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