Uea the following information supplied by Ryobi Eniarprises to prepare the 4.1 Deblors Collection Schedule for...

 

  

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Uea the following information supplied by Ryobi Eniarprises to prepare the 4.1 Deblors Collection Schedule for January and February 2021. (4 marha) 42 Cash Budget for January and February 2021. (16 marks) Note: Where applicabie, round off amounts to the nearest Rand INFORMATION Ryobi Enterprises expects to have a favourable bank balance of R20 000 on 31 December 2021 2. 1. Expected sales are as follows: December 2020 January 2021 February 2021 R280 000 R230 000 R260 000 Credit sales usually comprise 40% of the total sales. The rest of the sales are for cash, The amounts owing by debtors are USually collected as folows 30% is received in the same month as the credit sals 65% is received in the month after the sale 5% is wntlen off as bad debts 3. 4. 5% is writen off as bad debts 5. All purchases of inventory are on credt Expected purchases are as follows November 2020 December 2020 R180 000 R200 000 R150 000 January 2021 February 2021 R170 000 Creditors are paid two months after the purchase. The monthly salary expense of R60 000 is expected to increase by 8% from 01 February 2021. Interest on loan for three months at an interest rate of 12% pa on the loan balance of R120 000 will be paid on 31 January 2021. 8. 6. 7. Advertising expenses are paid monthly and are estimated to be 5% of the total sales of each month 9. The proprietor's cash drawings are expected to amount to R10 000 per morth 10 Other cash operating expennes am expected to amount to R30 000 for December 2020 These expenses are epectad to increase by 5% per month Uea the following information supplied by Ryobi Eniarprises to prepare the 4.1 Deblors Collection Schedule for January and February 2021. (4 marha) 42 Cash Budget for January and February 2021. (16 marks) Note: Where applicabie, round off amounts to the nearest Rand INFORMATION Ryobi Enterprises expects to have a favourable bank balance of R20 000 on 31 December 2021 2. 1. Expected sales are as follows: December 2020 January 2021 February 2021 R280 000 R230 000 R260 000 Credit sales usually comprise 40% of the total sales. The rest of the sales are for cash, The amounts owing by debtors are USually collected as folows 30% is received in the same month as the credit sals 65% is received in the month after the sale 5% is wntlen off as bad debts 3. 4. 5% is writen off as bad debts 5. All purchases of inventory are on credt Expected purchases are as follows November 2020 December 2020 R180 000 R200 000 R150 000 January 2021 February 2021 R170 000 Creditors are paid two months after the purchase. The monthly salary expense of R60 000 is expected to increase by 8% from 01 February 2021. Interest on loan for three months at an interest rate of 12% pa on the loan balance of R120 000 will be paid on 31 January 2021. 8. 6. 7. Advertising expenses are paid monthly and are estimated to be 5% of the total sales of each month 9. The proprietor's cash drawings are expected to amount to R10 000 per morth 10 Other cash operating expennes am expected to amount to R30 000 for December 2020 These expenses are epectad to increase by 5% per month

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41 Debtoxs Collection schedule Total Credit Colle... View the full answer