The Auditor General has reported that 90 municipalities are struggling to provide essential services such as...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Auditor General has reported that 90 municipalities are struggling to provide essential services such as water and electricity due to budget constraints. In turn these municipalities owe Electricity Suppliers and water boards billions of Rands. The poor revenue collection by municipalities has impacted negatively on the budget of service providers. Considering the current challenges service providers forecasts sales for the next six months as follows: July: R400 000 Oct: R900 000 August: R2 000 000 Nov: R1 000 000 ● Sept: R4 000 000 Dec: R3 000 000 The current sales strategy is that 40% of the sales are done in cash and the remainder on credit. Credit sales are collected as follows: • No collection during the month of sale 60% is collected one month after the month of sale 10% is collected two months after the month of sale The remainder in the third month following the month of sale Required: Calculate the total credit collections from credit sales for October, November and December. The Auditor General has reported that 90 municipalities are struggling to provide essential services such as water and electricity due to budget constraints. In turn these municipalities owe Electricity Suppliers and water boards billions of Rands. The poor revenue collection by municipalities has impacted negatively on the budget of service providers. Considering the current challenges service providers forecasts sales for the next six months as follows: July: R400 000 Oct: R900 000 August: R2 000 000 Nov: R1 000 000 ● Sept: R4 000 000 Dec: R3 000 000 The current sales strategy is that 40% of the sales are done in cash and the remainder on credit. Credit sales are collected as follows: • No collection during the month of sale 60% is collected one month after the month of sale 10% is collected two months after the month of sale The remainder in the third month following the month of sale Required: Calculate the total credit collections from credit sales for October, November and December.
Expert Answer:
Answer rating: 100% (QA)
ANS WER October R 360 000 November R 400 000 December R 1 800 000 WORK ING October 40 x R 900 000 R ... View the full answer
Related Book For
South Western Federal Taxation 2015 Essentials of Taxation Individuals and Business Entities
ISBN: 9781285438290
18th edition
Authors: James Smith, William Raabe, David Maloney, James Young
Posted Date:
Students also viewed these accounting questions
-
Assume the same facts as in Problem 13. What income, gains, losses, and deductions does Amy report on her income tax return? Based on the information provided, what other calculations is she required...
-
Assume the same facts as in Problem 32, except that the group members have adopted the relative tax liability tax-sharing method. In Problem The Chief consolidated group reports the following results...
-
Assume the same facts as in Problem 31, except that under the statutes of both D and E, only business income is subject to apportionment. State D State E Total Sales of paper products $3,000,000...
-
Your client, Mr. Brakes Inc., owns and operates an auto-motive repair shop in Cooperstown, New York. Mr. Brakes specializes in replacing and repairing brakes on cars, sport utility vehicles, and...
-
Suppose we use a Monte Carlo simulation approach to simulate the probability of some rare event A. It is decided that we will repeat the simulation until the event occurs 35 times. With what accuracy...
-
You and your friend are working in a lab and wish to measure the surface charge density on a slab of metal. The slab is very long and very wide, but flat. You begin adding up the field line flux...
-
Environmental accounting systems have been proposed for sovereign nations as well as for companies. Consider how a macro (national) and a micro (company) view of environmental accounting might differ.
-
1. Calculate the annual cost of each of the three accounts, assuming that Judiths banking habits remain the same. Which plan would you recommend and why? 2. Should Judith consider opening the...
-
The Singer Division of Patio Enterprises currently earns $2.97 million and has divisional assets of $22 million. The division manager is considering the acquisition of a new asset that will add to...
-
The shaft is made of A992 steel. It has a diameter of 1 in. and is supported by bearings at A and D, which allow free rotation. Determine the angle of twist of B with respect to D. 60 lb-ft 2 ft /60...
-
Gretta Chung Associates surveys American eating habits. The companys accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account...
-
How did Zoom leverage subsidies to grow and jump-start network effects?
-
How can the flow sheet be different if the peptide is thermally stable?
-
How did Zoom win? What had it done right when compared with rivals? How did it quickly grow market share and take advantage of network effects?
-
What is the difference between same-side exchange benefits and cross-side exchange benefits?
-
What are the different techniques that can be adopted to double the rate of drying in conduction?
-
71 ft A valley rafter is similar to a hip rafter, but it runs from a lower inside corner of the roof to the ridge. It runs along the intersection, or valley, of two roof surfaces as shown to the...
-
Nitrogen monoxide reacts with hydrogen as follows: 2NO(g)+ H2(g) N2O(g) + H2O(g) The rate law is [H2]/ t = k[NO]2[H2], where k is 1.10 107 L2/(mol2s) at 826oC. A vessel contains NO and H2 at...
-
What precedents must each of these courts follow? a. U.S. Tax Court. b. U.S. Court of Federal Claims. c. U.S. District Court.
-
For many years, Saul's sole proprietorship and his related Form 1040 have had a number of AMT tax preferences and AMT adjustments. He has made the AMT calculation each year, but the calculated amount...
-
Where can one locate a published decision of the U.S. Court of Federal Claims?
-
Prepare the journal entries for Kingston Dance Supplies, assuming that Kingston Dance Supplies uses a perpetual inventory system. The HST rate is 13 percent in Ontario. Explanations are not required....
-
Record the following note payable transactions of Lambda Company in the company's general journal. Explanations are not required. 2019 Jun. 1 Purchased delivery truck costing $86,000 by issuing a...
-
Suppose Detweiler Technologies borrowed \$2,000,000 on December 31, 2016, by issuing 4 percent long-term debt that must be paid in four equal annual instalments plus interest on the outstanding...
Study smarter with the SolutionInn App