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Posted on Jul 14, 2024

30 1021 100 000 1000 13.000 Chu Crne M 000 TO M 10 000 2000 10000 000 5000 300 1000 1000 So 10 300 100

30 1021 100 000 1000 13.000 Chu Crne M 000 TO M 10 000 2000 10000 000 5000 300 1000 1000 So 10 300 100 100 000 De Property lam Artur Sony Other Soo SOO 00 10 100 . 100 1500 100 100 2100 300 Al Les condition Web of the sale 2. The 300 510.000.000 3. No credite Laminec (570.000 de Nume 1.2036 Asche paper on November 2008 data hatchadland hip I Capas para o pause The 300.000 Dr. 200. The por am Theatemented wy 8. Ale o 20 postal islosur 2001 Sie property Map we had Par Fichage to eat forbedie dalichageperty ico suntury pad Sea to Capitax B 2001 1.200.000 The first and Monds 10. The opted coconube December 31, 2030 Spec.000.000 11 The whole 00.00 Mach 1001 nalo purchase the computer The computerspeed to be chochew Machicolo 11.000.000 No flave been to pade the wat 1 The company's to St.000 f10 There u Maha Sudete is to be seer.2001. The cost Required (0) Ahored by copy. Womento would you to prece the vided for beach 1,2021 incogenere you made in (b) be Casa de Credits Creditch Sales December $'000 12.000 30.000 40.000 5.000 500 1,600 Tary 5000 5,000 12.000 18.000 5,000 100 1.000 0 3.000 0 1.000 100 Fewy 5'000 6,000 10.10 40.00 300 1,000 0 o 100 1.500 100 Masch 5 000 10.000 26,000 10 000 7.000 400 1.000 Depreciation Property Instance Aditing Stahdery deduction Other peoses 0 500 1.500 300 0 300 2,100 200 Additional info 1 Collection from credit came Bormally 60% in the mouth of sale 30 in the following used the balance of 10 in the second mot following 2. The credit a fer November 2020 w 584,000,000 3. lachiding is the Nyester 2020 cedalis credel sale to Hard Luck Limited. The company (Hard Led Limited purchased 5100.000 poodson November 1, 2020. A notice the new paper on November 6, 2030 indicated that a low creditor of the company had placed the company to news 4 Credit purchase paid for in the mouth following purchase The company is expected to 12.000.000 a fixed deposit for moto December 1, 2010. The company will receive a rate of wampertum Theaters come will be received os monthly basis 6. Atom of 2 ss of total sale for December 2000 will be paid to staff be wary 2021 7 Salles waties, property twente, advertising and other express e paid in the month curred. Page 2 & charge psy Begleite de die will charge pally of 53.000 face quis in 9. Sy did for is following payroll Corporations for 1031 time 1.300.000 din scmilla The finally Macht 10 The speciales December 2010 to be 100.000 11. The costo postal 58.000.000 Mars 2011 www techase the "The respected to fit years the will www Mark 101 of 51.000.000 Newbee and 12. The State PP 14.000.000 esper The paid ya Muu 100. The koen is de Fry 2001 The yes Required Awed by a cyt Papucha Much Clean Enterprise Limited Cash sales Credit sales Credit purchases Salaries Utilities Depreciation Property taxes Insurance Advertising Statutory deductions Other expenses 2020 December $'000 12,000 30.000 40,000 5,000 500 1,000 0 0 500 1,500 300 2021 January $'000 5,000 12.000 18,000 5,000 300 1,000 0 3,000 0 1.800 100 2021 February $'000 6,000 10,000 40,000 5,000 300 1.000 0 0 100 1,500 100 2021 March $'000 10.000 26,000 10.000 7,000 400 1,000 100 0 300 2,100 200 Additional information: 1. Collection from credit customers are normally 60% in the month of sale, 30% in the month following sale and the balance of 10% in the second month following sale 2. The credit sale for November 2020 was $14,000,000 3. Including in the November 2020 credit sales is a credit sale to Hard Luck Limited. The company (Hard Luck Limited) purchased $100,000 goods on November 1, 2020. A notice in the newspaper on November 6, 2020 indicated that a loan creditor of the company had placed the company into receivership 4. Credit purchases are paid for in the month following purchase. 5. The company is expected to invest $12,000,000 on fixed deposit for six months on December 1, 2020. The company will receive a 5% rate of Tetum per annum. The interest income will be received on a monthly basis. 6. A bonus of 2% of total sales for December 2020 will be paid to staff members in January 2021. 7. Salaries, utilities, property taxes, insurance, advertising and other experises are paid in the mouth incurred. 8. Financial institutions charge no penalty for paying a loan before the due date Financial institutions will charge a penalty of $5,000 if a company liquidates its investment early. 9. Statutory deductions are paid for in the month following the payroll deductions Corporation tax for 2021 is estimated at $1,200,000 and is normally paid on a quarterly basis. The first payment is normally made on March 31. 10. The expected closing cash and bank balance on December 31, 2020 is expected to be $8,000,000. 11. The company wants to purchase computer equipment costing $8,000,000 in March 2021 and wants to obtain an overdraft to purchase the computer equipment. The computer equipment is expected to last for 4 years. The company will also need to purchase software in March 2021 at a cost of $1,000,000. No funds have been identified to purchase the software. 12. The company's Statement of Financial Position reveals a loan amounting to $4,000,000 at an interest rate of 10% per annum. The interest is paid quarterly on March 31, June 30, September 30, and December 31. The loan is to be repaid on February 28, 2021. The company pays the interest on a monthly basis. Required (1) Assume that you are employed by the company. What recommendations would you make to the management team of the company? (2 marks) (2) Prepare the revised cash budget for the quarter ending March 31, 2021 incorporating any relevant recommendation(s) you made in (1) above. (6 marks) 30 1021 100 000 1000 13.000 Chu Crne M 000 TO M 10 000 2000 10000 000 5000 300 1000 1000 So 10 300 100 100 000 De Property lam Artur Sony Other Soo SOO 00 10 100 . 100 1500 100 100 2100 300 Al Les condition Web of the sale 2. The 300 510.000.000 3. No credite Laminec (570.000 de Nume 1.2036 Asche paper on November 2008 data hatchadland hip I Capas para o pause The 300.000 Dr. 200. The por am Theatemented wy 8. Ale o 20 postal islosur 2001 Sie property Map we had Par Fichage to eat forbedie dalichageperty ico suntury pad Sea to Capitax B 2001 1.200.000 The first and Monds 10. The opted coconube December 31, 2030 Spec.000.000 11 The whole 00.00 Mach 1001 nalo purchase the computer The computerspeed to be chochew Machicolo 11.000.000 No flave been to pade the wat 1 The company's to St.000 f10 There u Maha Sudete is to be seer.2001. The cost Required (0) Ahored by copy. Womento would you to prece the vided for beach 1,2021 incogenere you made in (b) be Casa de Credits Creditch Sales December $'000 12.000 30.000 40.000 5.000 500 1,600 Tary 5000 5,000 12.000 18.000 5,000 100 1.000 0 3.000 0 1.000 100 Fewy 5'000 6,000 10.10 40.00 300 1,000 0 o 100 1.500 100 Masch 5 000 10.000 26,000 10 000 7.000 400 1.000 Depreciation Property Instance Aditing Stahdery deduction Other peoses 0 500 1.500 300 0 300 2,100 200 Additional info 1 Collection from credit came Bormally 60% in the mouth of sale 30 in the following used the balance of 10 in the second mot following 2. The credit a fer November 2020 w 584,000,000 3. lachiding is the Nyester 2020 cedalis credel sale to Hard Luck Limited. The company (Hard Led Limited purchased 5100.000 poodson November 1, 2020. A notice the new paper on November 6, 2030 indicated that a low creditor of the company had placed the company to news 4 Credit purchase paid for in the mouth following purchase The company is expected to 12.000.000 a fixed deposit for moto December 1, 2010. The company will receive a rate of wampertum Theaters come will be received os monthly basis 6. Atom of 2 ss of total sale for December 2000 will be paid to staff be wary 2021 7 Salles waties, property twente, advertising and other express e paid in the month curred. Page 2 & charge psy Begleite de die will charge pally of 53.000 face quis in 9. Sy did for is following payroll Corporations for 1031 time 1.300.000 din scmilla The finally Macht 10 The speciales December 2010 to be 100.000 11. The costo postal 58.000.000 Mars 2011 www techase the "The respected to fit years the will www Mark 101 of 51.000.000 Newbee and 12. The State PP 14.000.000 esper The paid ya Muu 100. The koen is de Fry 2001 The yes Required Awed by a cyt Papucha Much Clean Enterprise Limited Cash sales Credit sales Credit purchases Salaries Utilities Depreciation Property taxes Insurance Advertising Statutory deductions Other expenses 2020 December $'000 12,000 30.000 40,000 5,000 500 1,000 0 0 500 1,500 300 2021 January $'000 5,000 12.000 18,000 5,000 300 1,000 0 3,000 0 1.800 100 2021 February $'000 6,000 10,000 40,000 5,000 300 1.000 0 0 100 1,500 100 2021 March $'000 10.000 26,000 10.000 7,000 400 1,000 100 0 300 2,100 200 Additional information: 1. Collection from credit customers are normally 60% in the month of sale, 30% in the month following sale and the balance of 10% in the second month following sale 2. The credit sale for November 2020 was $14,000,000 3. Including in the November 2020 credit sales is a credit sale to Hard Luck Limited. The company (Hard Luck Limited) purchased $100,000 goods on November 1, 2020. A notice in the newspaper on November 6, 2020 indicated that a loan creditor of the company had placed the company into receivership 4. Credit purchases are paid for in the month following purchase. 5. The company is expected to invest $12,000,000 on fixed deposit for six months on December 1, 2020. The company will receive a 5% rate of Tetum per annum. The interest income will be received on a monthly basis. 6. A bonus of 2% of total sales for December 2020 will be paid to staff members in January 2021. 7. Salaries, utilities, property taxes, insurance, advertising and other experises are paid in the mouth incurred. 8. Financial institutions charge no penalty for paying a loan before the due date Financial institutions will charge a penalty of $5,000 if a company liquidates its investment early. 9. Statutory deductions are paid for in the month following the payroll deductions Corporation tax for 2021 is estimated at $1,200,000 and is normally paid on a quarterly basis. The first payment is normally made on March 31. 10. The expected closing cash and bank balance on December 31, 2020 is expected to be $8,000,000. 11. The company wants to purchase computer equipment costing $8,000,000 in March 2021 and wants to obtain an overdraft to purchase the computer equipment. The computer equipment is expected to last for 4 years. The company will also need to purchase software in March 2021 at a cost of $1,000,000. No funds have been identified to purchase the software. 12. The company's Statement of Financial Position reveals a loan amounting to $4,000,000 at an interest rate of 10% per annum. The interest is paid quarterly on March 31, June 30, September 30, and December 31. The loan is to be repaid on February 28, 2021. The company pays the interest on a monthly basis. Required (1) Assume that you are employed by the company. What recommendations would you make to the management team of the company? (2 marks) (2) Prepare the revised cash budget for the quarter ending March 31, 2021 incorporating any relevant recommendation(s) you made in (1) above. (6 marks)