The following information has been presented to you for Haider Projects Limited:

                                         September                 October             November

Cash revenue                  200 000                      220 000              240 000

Credit revenue                120 000                     180 000              190 000

Purchases (all credit)      130 000                     140 000                 120 000

Additional information:

1. Collection of credit revenue:

• 50% in the month of invoice

• 30% one month after invoice

• 15% two months after invoice and the balance written off as irrecoverable.

2. Purchases are on credit and are paid for one month after the purchase, less 5% discount.

3. Rent income amounts to R10 000 per month. The rent will increase by 8% on 1 October.

4. A fixed deposit of R150 000 will mature on 31 October. Interest of R15 000 will also be received on this date.

5. A new computer will be purchased on 3 September for R25 000 cash.

6. Salaries amount to R20 000 per month. A 10% increase will take effect on 1 October.

7. The owner is expected to take R5 000 cash from the business on 20 October for his son’s birthday gift.

8. Variable expenses are estimated to be R6 000 in September and expected to increase by R2000 per month thereafter.

9. The business expects to have a favourable bank balance of R50 000 on 1 September.

Required: 

1 Debtors collection schedule for September, October and November.

2 Cash budget statement for the three months ending 30 November.

Answer rating: 100% (QA)

Answer to question 1 Debtors Collection Schedule To calculate the debtors collection schedule we nee... View the full answer