1. Cash at bank on 1 January 2023 amounted to R200 000. 2. Projected sales for the first four months of 2023: January R220 000 February R600 000 March R720 000 April R850 000 Fifty percent (50%) of the sales are for cash and fifty percent (50%) are on credit. Cash customers are entitled to a 5% cash discount. 2 3. Collection of credit sales: · 60% of the credit sales are collected in the month of the sale. · 30% is collected in the following month and the balance is written off as a bad debt. 4. Purchases for the first four months of 2023 are expected to be as follows: January R100 000 February R150 000 March R160 000 April R180 000 All purchases are on credit. 50% of the purchases will be paid for in the month of purchase and the remaining 50% in the following month. 5. Fixed overheads total R200 000 per year and are paid for equally each month. 6. Administrative expenses are paid for in the month in which they are incurred and are estimated at a total of R10 000 per month An investment of R200 000 matures on 31 March 2023, and interest of R10 000 will also be received on this date. 1. Prepare the Debtors Collection Schedule for the first four months of 2023. 2. Prepare the Cash Budget for the first four months of 2023.
1. Cash at bank on 1 January 2023 amounted to R200 000.
2. Projected sales for the first four months of 2023:
January R220 000
February R600 000
March R720 000
April R850 000
Fifty percent (50%) of the sales are for cash and fifty percent (50%) are on credit. Cash customers are entitled to a 5% cash discount.
2
3. Collection of credit sales:
· 60% of the credit sales are collected in the month of the sale.
· 30% is collected in the following month and the balance is written off as a
4. Purchases for the first four months of 2023 are expected to be as follows:
January R100 000
February R150 000
March R160 000
April R180 000
All purchases are on credit. 50% of the purchases will be paid for in the month of purchase and the remaining 50% in the following month.
5. Fixed overheads total R200 000 per year and are paid for equally each month.
6. Administrative expenses are paid for in the month in which they are incurred and are estimated at a total of R10 000 per month
An investment of R200 000 matures on 31 March 2023, and interest of R10 000 will also be received on this date.
1. Prepare the Debtors Collection Schedule for the first four months of 2023.
2. Prepare the
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