REQUIRED Use the information provided by Empire Traders to prepare the following for March and April...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
REQUIRED Use the information provided by Empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget. INFORMATION (4 marks) (16 marks) The following information was provided by Empire Traders: 1. 2. Empire Traders expects to have a favourable bank balance of R60 000 on 28 February 2024. Budgeted sales figures for 2024 are as follows: January February March April Cash sales R320 000 R370 000 R310 000 R250 000 Credit sales R370 000 R390 000 R320 000 R300 000 3. 4. 5. Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: 80% is collected in the month after the sale. 20% is collected two months after the sale. Purchases of inventory are expected to be as follows: January Total purchases R410 000 February R460 000 March April R400 000 R380 000 Sixty percent (60%) of the purchases is for cash to take advantage of a discount of 15%. The balance is purchased on credit. Creditors are paid two months after the month of purchase. (Separate entries for cash and credit payments are required.) 6. The proprietor's monthly drawings comprise R12 000 inventory and R10 000 cash. 7. 8. 9. The monthly salaries are expected to amount to R194 400 for April 2024 after an increase of 8% takes effect on 01 April 2024. A fixed deposit, R100 000, will mature (expire) on 31 March 2024. Interest at 12% per annum for three months will also be received. Equipment with a cost price R160 000 will be purchased on 31 March 2024. A deposit 25% will be paid on this date. The balance will be paid in four equal monthly instalments commencing 30 April 2024. 10. Other cash operating expenses are expected to amount to R160 000 for February 2024 and are expected to increase by 5% each month thereafter. REQUIRED Use the information provided by Empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget. INFORMATION (4 marks) (16 marks) The following information was provided by Empire Traders: 1. 2. Empire Traders expects to have a favourable bank balance of R60 000 on 28 February 2024. Budgeted sales figures for 2024 are as follows: January February March April Cash sales R320 000 R370 000 R310 000 R250 000 Credit sales R370 000 R390 000 R320 000 R300 000 3. 4. 5. Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: 80% is collected in the month after the sale. 20% is collected two months after the sale. Purchases of inventory are expected to be as follows: January Total purchases R410 000 February R460 000 March April R400 000 R380 000 Sixty percent (60%) of the purchases is for cash to take advantage of a discount of 15%. The balance is purchased on credit. Creditors are paid two months after the month of purchase. (Separate entries for cash and credit payments are required.) 6. The proprietor's monthly drawings comprise R12 000 inventory and R10 000 cash. 7. 8. 9. The monthly salaries are expected to amount to R194 400 for April 2024 after an increase of 8% takes effect on 01 April 2024. A fixed deposit, R100 000, will mature (expire) on 31 March 2024. Interest at 12% per annum for three months will also be received. Equipment with a cost price R160 000 will be purchased on 31 March 2024. A deposit 25% will be paid on this date. The balance will be paid in four equal monthly instalments commencing 30 April 2024. 10. Other cash operating expenses are expected to amount to R160 000 for February 2024 and are expected to increase by 5% each month thereafter.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
"Assault on college campuses can no longer remain just a female issue, and universities nationwide must prepare males for the same protections it provides their female counterparts in college Title...
-
How would you prepare for labor contract negotiations as a member of management? As head of the union negotiating committee?
-
During August 2014, Packer Manufacturing had the following cash receipts and disbursements: Cash received from customers .......... $319,000 Cash received from selling equipment ....... 11,200 Cash...
-
Go to EY.com and click on the three horizonal lines in the upper right corner. Next, choose "What we do" and then select "Our services" from the menu on the right side. Finally, click "Analytics and...
-
Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
-
Busines Law II 14. Martin Manufacturing decided to raise additional long-term capital by mortgaging an industrial park it owned. First National Loan Co. agreed to lend Martin $1 million and to take a...
-
Prepare a personal budget. If you are committed to a particular field, use the Internet (or other reliable information) to estimate your starting salary. Use the results of projects 2 and 3 to help...
-
what ways do we foster a culture of continuous improvement to drive efficiency gains, encouraging team members to suggest and implement innovative solutions?
-
a) Elaborate around the concept of risk and how to address it when making an investment appraisal. 12 points b) Explain with an example the effect from perfect positive and negative correlation when...
-
What is a particular arbitration, dispute resolution skill that you are focused on developing or improving right now, and why?
-
Given the following matrices E and F, compute the product EF, if possible. 3 B= -3 -6 3-5-3
-
BMW target audience comprises individuals who value luxury, performance, and innovative design in their vehicles. In fact, BMW's vision is to "be the most successful, most sustainable premium...
-
NiteLate Inc. had revenue of $137,000 last year, costs of $82,200 and depreciation of $20,550. The company paid 4.5% interest on its debt, and its average tax rate is 0.25. NiteLate paid out $13,700...
-
For each equation, (a) Write it in slope-intercept form (b) Give the slope of the line (c) Give the y-intercept (d) Graph the line. 7x - 3y = 3
-
Young Company sells an electric timer that carries a 3-month unconditional warranty against product failure. Based on a reliable statistical analysis, Young knows that between the sale and the end of...
-
Navarro, Inc., issued \(\$ 250,000\) of eight percent, 20 -year bonds at 98 on June 30, 2012. Interest is payable semiannually on December 31 and June 30. Through June 30, 2018, Navarro amortized...
-
Determine which of the following transactions represent contingent liabilities for June Leasing and indicate the proper accounting treatment at the company's fiscal year-end, by placing the letter of...
Study smarter with the SolutionInn App