Prepare the Cash budget of a project of Midas Enterprises for the period 01 February 2024...

 

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Prepare the Cash budget of a project of Midas Enterprises for the period 01 February 2024 to 30 April 2024 from the information provided below. (Note: The Cash budget must reflect separate monetary columns for each month.) INFORMATION 1. 2. A favourable bank balance of R7 000 is expected on 31 January 2024. Expected monthly total sales are as follows: January February March April Units 5000 5.000 4 500 5 700 The selling price is R120 per unit. All units produced are sold in the same month. 3. Cash sales comprise 60% of the total sales and a 5% cash discount is granted on all cash sales. The balance of the sales is on credit. Debtors pay in the month after the sale. (Separate entries are required for cash sales and receipts from debtors.) 4. Material purchases are expected to be as follows: January February March April R260 000 R240 000 R216 000 R300 000 8. 9. 5. 6. 7. Seventy percent (70%) of the material purchases is for cash and balance is paid for in the following month. Forty percent (40%) of the cash purchases is subject to a 10% cash discount. (Separate entries are required for cash purchases and payments to creditors.) Labour costs amount to R38 per unit and are paid in the month in which it is incurred. Manufacturing overheads are forecast at R36 000 per month but exclude R3 600 per month for depreciation on machinery. Manufacturing overheads are payable in the month they are incurred. Selling and administrative costs contain a fixed portion of R42 000 per month and a variable component of 20% of the sales value (before any discounts are allowed). These costs are paid by the end of the applicable month. (One entry only is required for selling and administrative costs.) Equipment with a cost price of R240 000 is to be purchased during February 2024. A deposit of 10% of the purchase price must be paid in the month of the purchase and the balance is payable in ten equal monthly instalments commencing March 2024. Ten percent (10%) of the sales value (excluding discounts) in excess of R300 000 will be transferred to Prepare the Cash budget of a project of Midas Enterprises for the period 01 February 2024 to 30 April 2024 from the information provided below. (Note: The Cash budget must reflect separate monetary columns for each month.) INFORMATION 1. 2. A favourable bank balance of R7 000 is expected on 31 January 2024. Expected monthly total sales are as follows: January February March April Units 5000 5.000 4 500 5 700 The selling price is R120 per unit. All units produced are sold in the same month. 3. Cash sales comprise 60% of the total sales and a 5% cash discount is granted on all cash sales. The balance of the sales is on credit. Debtors pay in the month after the sale. (Separate entries are required for cash sales and receipts from debtors.) 4. Material purchases are expected to be as follows: January February March April R260 000 R240 000 R216 000 R300 000 8. 9. 5. 6. 7. Seventy percent (70%) of the material purchases is for cash and balance is paid for in the following month. Forty percent (40%) of the cash purchases is subject to a 10% cash discount. (Separate entries are required for cash purchases and payments to creditors.) Labour costs amount to R38 per unit and are paid in the month in which it is incurred. Manufacturing overheads are forecast at R36 000 per month but exclude R3 600 per month for depreciation on machinery. Manufacturing overheads are payable in the month they are incurred. Selling and administrative costs contain a fixed portion of R42 000 per month and a variable component of 20% of the sales value (before any discounts are allowed). These costs are paid by the end of the applicable month. (One entry only is required for selling and administrative costs.) Equipment with a cost price of R240 000 is to be purchased during February 2024. A deposit of 10% of the purchase price must be paid in the month of the purchase and the balance is payable in ten equal monthly instalments commencing March 2024. Ten percent (10%) of the sales value (excluding discounts) in excess of R300 000 will be transferred to

Answer rating: 100% (QA)

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