Use the information provided below to prepare the following for January and February 2023:4.1Debtors Collection Schedule4.25.6.7.8.9.10.INFORMATIONThe following information was provided by Intel Enterprises:1.2.Cash Budget3.4.The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).Credit sales are expected to be as follows:December 2022R576 000Credit sales are normally collected as follows:65% in the following monthJanuary 2023Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.The rest is usually written off as bad debts.R540 000* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.December 2022Budgeted purchases of inventory are as follows:R1 000 000February 2023January 2023R648 000R800 000February 2023R920 000Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with effect from 01February 2023 for those employees who presently make up 80% of the salary bill. The salaries of theremaining 20% are expected to increase by 6%.Interest at 18% per annum on the loan balance is paid at the end of each month. The loan balance on 31December 2022 was R400 000 and a capital repayment of R100 000 will be made on 01 February 2023.Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the yearended 31 January 2023 reflected the rental as R180 000 per annum. The rental will increase by 10% witheffect from 01 February 2023.Other operating expenses are budgeted at R40 000 per month. This amount includes R5 000 fordepreciation. Operating expenses are paid for in the month in which they are incurred.

Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 INFORMATION The following information was provided by Intel Enterprises: 1. 2. Cash Budget 3. 4. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable). Credit sales are expected to be as follows: December 2022 R576 000 January 2023 R540 000 February 2023 Credit sales are normally collected as follows: R648 000 Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. * 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.

Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 INFORMATION The following information was provided by Intel Enterprises: 1. 2. Cash Budget 3. 4. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable). Credit sales are expected to be as follows: December 2022 R576 000 January 2023 R540 000 February 2023 Credit sales are normally collected as follows: R648 000 Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. * 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows: December 2022 January 2023 February 2023 R576 000 R540 000 R648 000 3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows: December 2022 January 2023 February 2023 R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the…
Use the information provided below to prepare the following for January and February 2023: 4.2)Cash Budget INFORMATION The following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150…
Use the information provided below to prepare the Cash Budget for January and February 2023:INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 - R576 000 January 2023 - R540 000 February 2023 - R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 - R1 000 000 January 2023 - R800 000 February 2023 - R920 0006. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150 000.…
You are required to prepare the cash budget for the two months of January and February 2021. The following is the projected information: January 2021 February 2021 Cash sales R280,336 R305,132 Receivables collection R69,602 R70,277 Cash purchases R34,997 R36,515 Rent payment R7,545 R7,545 The bank balance on 1 January 2021 is expected to be R201,806 favourable. A fixed deposit for R113,959 is expected to mature on 25 January 2021. Equipment to the value of R142,119 is to be purchased on credit in January 2021 and will be paid in full on 28 February 2021. The expected closing bank balance on 31 January 2021 will be R _________ .
Use the information provided below to prepare the following for January and February 2023:Debtors Collection Schedule The following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 0004.26. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150 000.…
A. The following information is extracted from Merry Hotel’s management report for themonth of January 2022. USD Beginning cash balance 8,200 Budgeted revenue 13,000 Purchase of inventory by cash 4,500 Cash repayment of bank loan 5,800 Additional information, 70% of Sosana Hotel’s revenue is received in cash and theremaining 30% on credit. All credit sales are expected to be collected in the followingmonth. Assume that there were no credit sales and credit purchases in December 2021.Based on the given information, prepare a cash budget for the month ended 31st January2022 to calculate ending cash balance.
In preparing its budget for July 2026, Robinson Company has the following accounts receivable information available: Accounts receivable at June 30, 2026 P 350,000 Estimated credit sales for July 400,000 Estimated collections in July for credit sales in July and prior years. 320,000 Estimated write-off in July for uncollectible credit sales. 16,000 Estimated provision or doubtful accounts for credit sales in July 12,000 What is the projected balance of accounts receivable at July 31, 2026? Group of answer choices
INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 0006. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with…
Use the information provided below to prepare the following for January and February 2023:4.1 Debtors Collection Schedule INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are…
USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 4 TO 6. Whittle Ltd is preparing a cash budget for the first six months of the coming year, 2024. The company’s financial manager has pulled all the cash sales and income from the past year (2023) and adjusted them for the expected growth in the coming year already and calculated net cash flows for each month, except for collections from credit sales. The system however does not do credit collection estimates, however an ageing report has been generated. Credit sales over the last four months of 2023 were as follows: September October November December R10 000 R12 000 R15 000 R45 000 Credit sales for the first 6 months of 2024 were estimated as follows: January February March April May June R5 000 R10 000 R12 000 R14 000 R18 000 R25 000 The ageing analysis indicates that on credit sales, payments are usually made as follows for any given month’s sales: 1 month 2 months 3…
Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows: Month November 2023 - March 2024 Cash Sales Sales on Account Purchases November $151,000 $480,000 $375,000 December $145,500 $600,000 $360,000 January $159,025 $700,000 $508,000 February $169,350 $650,000 $400,000 March $176,200 $800,000 $521,000 An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale.25% in the second month following the sale. (iii) Expected purchases include cash purchases of $28,000 in January and $21, 000 in March.All other purchases are on account. Accounts payable are settled as follows, in accordancewith the credit terms 4/30, n60:75% in the month in which the inventory is purchased.25% in the following month (iv) The management of Toyota &…