Use the information provided below to prepare the following for Protea Limited for January, February and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the information provided below to prepare the following for Protea Limited for January, February and March 2023: 4.1 4.2 INFORMATION Protea Limited is in the process of formulating plans for the first quarter of 2023. The following sales figures show the growth expected: 1. Year Month 2 3. 4. 5. 6. Debtors Collection Schedule Cash Budget 7. 8. 2022 2023 2023 2023 December January February March (6 marks) (14 marks) Sales R460 000 R560 000 Wages and fringe benefits equal 20% of the current month's sales (excluding any discounts). Labour costs are paid for in the month in which they are incurred. Property taxes are estimated at R48 000 for 2023 and will be paid in four equal instalments in the last month of each quarter. General and administrative expenses are projected to be R420 000 for 2023 including depreciation of R48 000. These expenses are incurred evenly throughout the year and are payable monthly. Selling and distribution expenses amount to R24 000 for January 2023 and are expected to increase by 10% per month thereafter. 9. A provisional company tax payment will be made during January 2023 and it is calculated at a rate of 28% on half the estimated taxable income of R880 000 for the financial year. 10. The expected cash balance on 31 December 2022 is R100 000. R640 000 R720 000 Forty percent (40%) of the sales is expected to be for cash and the balance is on credit. Twenty percent (20%) of the credit sales is expected to be collected in the month of the sale and 75% in the month after the sale. The remaining 5% is usually written off as bad debts. Debtors who settle their accounts in the month of the sale are entitled to a 5% discount. The purchase of inventory is the company's largest expenditure and the cost of these items equals 60% of the current month's sales (excluding any discounts). Sixty percent (60%) of the purchases is for cash, to take advantage of a 10% discount. The balance is on credit and is paid in the month after the purchase. Use the information provided below to prepare the following for Protea Limited for January, February and March 2023: 4.1 4.2 INFORMATION Protea Limited is in the process of formulating plans for the first quarter of 2023. The following sales figures show the growth expected: 1. Year Month 2 3. 4. 5. 6. Debtors Collection Schedule Cash Budget 7. 8. 2022 2023 2023 2023 December January February March (6 marks) (14 marks) Sales R460 000 R560 000 Wages and fringe benefits equal 20% of the current month's sales (excluding any discounts). Labour costs are paid for in the month in which they are incurred. Property taxes are estimated at R48 000 for 2023 and will be paid in four equal instalments in the last month of each quarter. General and administrative expenses are projected to be R420 000 for 2023 including depreciation of R48 000. These expenses are incurred evenly throughout the year and are payable monthly. Selling and distribution expenses amount to R24 000 for January 2023 and are expected to increase by 10% per month thereafter. 9. A provisional company tax payment will be made during January 2023 and it is calculated at a rate of 28% on half the estimated taxable income of R880 000 for the financial year. 10. The expected cash balance on 31 December 2022 is R100 000. R640 000 R720 000 Forty percent (40%) of the sales is expected to be for cash and the balance is on credit. Twenty percent (20%) of the credit sales is expected to be collected in the month of the sale and 75% in the month after the sale. The remaining 5% is usually written off as bad debts. Debtors who settle their accounts in the month of the sale are entitled to a 5% discount. The purchase of inventory is the company's largest expenditure and the cost of these items equals 60% of the current month's sales (excluding any discounts). Sixty percent (60%) of the purchases is for cash, to take advantage of a 10% discount. The balance is on credit and is paid in the month after the purchase.
Expert Answer:
Answer rating: 100% (QA)
41 January 20 of credit sales R128 000 75 of credit sales from previous month R360 000 Total Debtors ... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
Students also viewed these accounting questions
-
Use the information provided below to prepare the following for Xpanda Limited for February and March 2022: Debtors Collection Schedule Cash Budget. INFORMATION The following budgeted information was...
-
Use the information provided below to prepare the Cash Flow Statement of Harmony Limited for the year ended 31 December 2020. Harmony Limited Extract of Statement of Comprehensive Income for the year...
-
Use the information provided below to prepare the Cash Flow Statement for the year ended 31 December 2021. INFORMATION The information given below was obtained from the books of Libra Limited on 31...
-
Solve the equation symbolically. Then solve the related inequality. - - x] S | - H =
-
Consider three independent cases for the cash flows of 579 Pavilion Shoes. For each case, identify from the statement of cash flows how 579 Pavilion Shoes generated the cash to acquire new plant...
-
A thief is trying to escape from a parking garage after completing a robbery, and the thief???s car is speeding (v = 12 m/s) toward the door of the parking garage (Fig. P2.60). When the thief is L -...
-
Little People Learning Center (LPLC) has assembled the following data for the year ended June 30, 2005. Prepare the operating activities section of LPLC's statement of cash flows for the year ended...
-
A saturated-vapor mixture of maleic anhydride and benzoic acid containing 10 mol% acid is a by-product of the manufacture of phthalic anhydride. This mixture is distilled continuously at 13.3 kPa to...
-
'Transfer Pricing' analysis and/or 'Cultural problem in managing teams' analysis for Yushan Bicycles (03/29) 1. Summarize and present succinctly the two sides to the conflict at Yushan bicycles...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
12. Create a bar graph of three (3) trials showing the relative RGB mixtures with color name. Insert your graphs below.
-
Question: What are the components of aggregate demand in a country's economy, and how do changes in these components impact overall economic output?
-
In cosmology, the Hubble time is the time for us to receive the light of a galaxy that is just about close to move away from us at the speed of light. Currently this is estimated to have a value of...
-
How would you improve the master baker's productivity? How will you improve the bread factory's productivity?
-
Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted Data Assembly Overhead cost $ 1,485,900 Direct labor hours Machine hours 12,700 direct labor hours...
-
If someone had bought 2,120 shares at the end of Year 2 and sold these shares at the end of Year 4, how much net profit they have made as a result of their share ownership? Show all work step by step.
-
According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount ?G and the planned expenditure schedule increases by an equal amount, the...
-
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
-
Taplmmune Inc. began operations on January 1, 2013. Its post-closing trial balance at December 31, 2013 and 2014 is shown below along with some other information. Other information regarding...
-
Labopharm Inc. is authorized to issue an unlimited number of common shares and 100,000 shares of $24 non-cumulative preferred. The company completed the following transactions: Required 1. Prepare...
-
On October 3, 2014, Allarco Inc. issued 4,000 of its preferred shares for cash of $15 each. On November 19 the company issued 3,400 preferred shares in exchange for land with a fair market value of...
-
What is the function of a steering gear?
-
A shaft running at \(1200 \mathrm{rpm}\) is connected to a second shaft by a Hooke's joint. The angle between the axes of the shafts is \(15^{\circ}\). Determine the velocity and acceleration of the...
-
Watt mechanism is capable of generating (a) approximate straight line (b) exact straight line (c) approximate circular path (d) exact circular path.
Study smarter with the SolutionInn App