Use the information provided below to prepare the following for November and December 2021:4.1Debtors Collection Schedule4.2Cash BudgetINFORMATIONThe following budgeted information was provided by Sentinel Enterprises:1.The expected bank balance on 31 October 2021 is R20 000 (favourable).2.Credit sales are forecast as follows:October 2021November 2021December 2021R280 000R240 000R320 000 3.Credit sales are normally collected as follows:30% in the month in which the transaction takes place and these debtors are entitled to a 5% discount.70% in the following month.4.Cash sales usually make up 60% of the total sales. The balance of the sales is on credit.5.Purchases of inventory for resale (excluding discounts) are as follows:October 2021November 2021December 2021Credit purchasesR200 000R400 000R260 000Cash purchasesR150 000R200 000R140 0006.Creditors are paid in the month after the purchase. Thirty percent (30%) of the cash purchases is fromsuppliers who grant a 10% cash discount.7.The salaries for December 2021 are expected to amount to R167 200, after a 10% increase takes effectfrom 01 December 2021.8.Interest at 15% per annum is payable on the loan at the end of each month. The loan balance on 01November 2021 is expected to be R240 000 and capital repayments of R10 000 per month are alsopayable at the end of each month.9.Part of the building is sublet to a tenant. The lease agreement for the year ended 30 November 2021reflected the rental at R96 000 per annum. The rental will increase by 10% on 01 December 2021. Rent ispayable monthly.10.Other cash operating expenses are budgeted at R40 000 for October 2021. These expenses are expectedto increase by 5% each month.

Use the information provided below to prepare the following for November and December 2021: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION The following budgeted information was provided by Sentinel Enterprises: 1. The expected bank balance on 31 October 2021 is R20 000 (favourable). 2. Credit sales are forecast as follows: October 2021 November 2021 December 2021 R280 000 R240 000 R320 000

Use the information provided below to prepare the following for November and December 2021: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION The following budgeted information was provided by Sentinel Enterprises: 1. The expected bank balance on 31 October 2021 is R20 000 (favourable). 2. Credit sales are forecast as follows: October 2021 November 2021 December 2021 R280 000 R240 000 R320 000

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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A company has the following budgeted sales in each quarter of the year 2024: Expected Sales Q1 Q2 Q3 Q4 Cash collection information is as follows: $240,000 $280,000 $300,000 $420,000 1. Of all sales, 70% are on credit REMBRA 2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter, and 10% are collected in the second quarter after the sale. 3. Accounts Receivable is estimated to be $63,000 on December 31,2023. The company expects to collect all outstanding receivabl in the first quarter of 2024. Q. What is the total cash collection for the second quarter of 2024? Answer. (Click to select) (Click to select) None of the answers are correct $231,000 $168,000 $252,000 $315,000
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. Prepare the cash budget of Meridian Machine Tools LLC for March to May 2020 from the following formation. he company estimates its sales, purchases and other eexpenses as following January February March April May Particulars OMR OMR OMR OMR OMR 120,000 180,000 90,000 135,000 270,000 405,000 180,000 270,000 Sales 80,000 Purchases 60,000 Wages 18,000 23,000 32,000 45,000 50,000 Admin –Expenses 10,000 20,000 25,000 30,000 35,000 Selling & Distribution Expenses 12,000 24,000 36,000 48,000 42,000 he company also provides additional information to its estimates: 1. Cash sale are 20% of total sales; 50% of sales amount is collected in one month and the balance in two months 2. 25% of purchases are made on cash basis; 50% of purchases amount is paid within one month and the balance in two months 3. The time lag in the payments of wages is half (1/2) of the month and that of Admin. Expenses one month; Admin Expenses for each month include deprecation amounting to RO 5,000. 4. 10,000 6%…
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