REQUIREDUse the information provided below to prepare the following for March and April 2024:4.1Debtors Collection Schedule4.2 Cash BudgetINFORMATIONThe 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:2JanuaryMarchR1 500 000R1 000 0003.4.4.14.25.6.7.8.9.FebruaryR1 100 000Cash sales usually make up 30% of the total sales. The balance of the sales is on credit. (Separateentries 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% discount65% in the month after the saleThe rest is usually written off as bad debts.Purchases from February to April 2024 are expected to be as follows:FebruaryMarchR320 000R350 000Cash purchasesCredit purchasesAprilR1 200 000R360 000R400 000AprilR480 000R440 000The loan balance is expected to be R360 000 on 01 March 2024. Repayments of R15 000 per monthare made at the end of each month as per the loan agreement. Interest at 12% per annum on theloan balance is also payable at the end of each month.Part of the building is sublet to a tenant. The lease agreement for the year ended 31 March 2024reflected the rental at R144 000 per year, payable monthly. The rental will increase by 10% with effectfrom 01 April 2024.10. Other cash operating expenses are expected to total R150 000 for February 2024. These expensesare expected to increase by 5% each month thereafter.Sixty percent (60%) of the cash purchases is subject to a 10% cash discount. Creditors are paid inthe month after the month of purchase. (Separate entries for cash purchases and payments tocreditors are required.)The monthly salaries amount to R200 000. This includes the salary of the manager, R50 000. On 01April 2024 the salary of the manager is expected to increase by 8% and the rest of the employees by10%.

Debtors Collection Scheduled :— It is a scheduled that provides net Cash collection from the…

Answered: Use the information provided below to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assets Cash Minden Company Balance Sheet April 30 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $ 11, 100 72,500 37,500 238,000 $ 359,100 $ 68,000 19,400 180,000 91,700 $ 359,100 The company is in the process of preparing a budget for May and assembled the following data: a. Sales are budgeted at $255,000 for May. Of these sales, $76,500 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder are collected in the following month. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $189,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following…
how would you calculate this Another team member who is preparing the budgeted balance sheet for the business for the same quarter ending September 30, 2022, has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? if yes what should these amounts be?
The City of Bedford Falls debt service fund budgeted $150,000 (2 payments of $75,000) for interest and an annual principal payment of $500,000. Funding will be transferred from the general fund at the time payments are to be made. Interest payments will be December 15 and June 15. Principal will be paid on June 15. Journalize the budget for July 1 Journal any necessary December 15 entry(ies) What is the amount of accrued interest to be recorded in the Debt Service Fund at June 30?
The following information is available from various budgets for the current period: Amount Budget Cash budget Account Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation - Equipment Schedule of cash receipts from customers Inventory, purchases, and cost of goods sold budget Selling and administrative expense budget Capital expenditures budget OA. $173,000 OB. $164,000 OC. $159,000 O D. $162,000 $28,000 Merchandise Inventory Insurance Expense (expense incurred during the period) Equipment Depreciation Expense Equipment (expense incurred during the period) Selling and administrative expense budget 2,000 The following balances are available from the balance sheet at the end of the previous year: $5,000 28,000 7,000 What would be the amount of total assets on the budgeted balance sheet? 35,000 41,000 2,000 36,000
Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
The income statement for the first quarter of 2019 was as follows: Income Statement For the Quarter Ended March 31, 2019 Sales Cost of goods sold Gross profit Operating expenses ales salaries Rent expense Depreciation Utilities Miscellaneous Total operating expenses Net income $52,000 24,000 12,000 3,600 12,800 $720,000 396,000 324,000 104,400 $219,600 Prepare a budgeted quarterly income statement in tabular form for the first quarter of 2020.
B. Another team member who is preparing the Budgeted Balance Sheet for the business forthe same quarter ending September 30, 2022, has asked you to furnish him with the figuresfor the expected trade receivables and payables to be included in the statement. Is that areasonable request? If yes, what should these amounts be? C. Upon receipt of the budget, the team manager, Dannie Bruce, has now informed you that, inkeeping with industry players, the management of Sallat Household Furnishings haveindicated an industry requirement to maintain a minimum cash balance of $155,000 eachmonth. He has also noted that management is very keen on keeping the gearing ratio of thebusiness as low as possible and would therefore prefer to cushion any gaps internally usingequity financing. Based on the budget prepared, will the business be achieving this desired industry target?Suggest three (3) internal strategies that may be employed by management to improve theorganization’s monthly cash flow and…
Perez Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Perez expects sales in January year 1 to total $210,000 and to increase 20 percent per month in February and March. All sales are on account. Perez expects to collect 68 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 8 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1. Determine the amount of sales revenue Perez will report on the year 1 first quarterly pro forma income statement. Prepare a cash receipts schedule for the first quarter of year 1. Determine the amount of accounts receivable as of March 31, year 1. Complete this question by entering your answers in the tabs below. Prepare a sales budget for the first quarter of year 1.
3. The Uthred Company, a merchandising firm, has planned the following sales for the next four months: March $50,000 Аpril $70,000 Мay $90,000 June July $90,000 Total budgeted Sales $60,000 Sales are made 60% on account and 40% cash. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale 60% • First month following month of sale . • Second month following month of sale • Uncollectible 28% 10% 2% Uthred has a building that is not used in the business operation; they rented it out and receive $10,080 rent every month. The company requires a minimum cash balance of $14,000 to start a month.
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
The last budget to be prepared in the master budget Balance sheet Cash budget Income statement Selling and administrative expenses budget Group of answer choices 1 2 3 4
Dd.1

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Use the information provided below to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget