REQUIRED Use the information provided by Empire Traders to prepare the following for March and April 2
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Question:
REQUIRED
Use the information provided by Empire Traders to prepare the following for March and April :
Debtors Collection Schedule
Cash Budget.
INFORMATION
The following information was provided by Empire Traders:
Empire Traders expects to have a favourable bank balance of R on February
Budgeted sales figures for are as follows:
January February March April
Cash sales R R R R
Credit sales R R R R
Thirty percent of the cash sales is to informal traders who are entitled to a discount of
Collections from debtors are usually as follows:
is collected in the month after the sale.
is collected two months after the sale.
Purchases of inventory are expected to be as follows:
January February March April
Total purchases R R R R
Sixty percent of the purchases is for cash to take advantage of a discount of 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.
The proprietors monthly drawings comprise R inventory and R cash.
The monthly salaries are expected to amount to R for April after an increase of takes
effect on April
A fixed deposit, R will mature expire on March Interest at per annum for three
months will also be received.
Equipment with a cost price R will be purchased on March A deposit will be paid
on this date. The balance will be paid in four equal monthly instalments commencing April
Other cash operating expenses are expected to amount to R for February and are expected
to increase by each month thereafter
Posted Date: