Complete the $2017$ Statement of Financial Statement $($balance sheet$)$ for Sutherland

Industries using the information that follows.

Statement of Financial Statement $($Balance Sheet$)$

Sutherland Industries December $31,2017$

Cash R$60,000$ Accounts payable R$240,000$

Marketable

securities

$50,000$ Notes payable

Accounts

receivable

Accruals $40,000$

Inventories Total current liabilities

Total current

assets

Long$-$term debt

Net fixed assets Stockholders$$ equity $1200,000$

Total assets Total liabs & owners$$

equity

The following financial data for end $2017$ is also available:

i$.$ Sales totalled R$3,600,000.$

ii$.$ The gross profit margin was $25\%.$

iii. Inventory turnover was $6\mathrm{.}0.$

iv$.$ There are $360$ days in the year.

v$.$ The average collection period is $40$ days.

vi$.$ The current ratio was $1\mathrm{.}60.$

vii. The total asset turnover ratio was $1\mathrm{.}20.$

viii. The debt ratio was $60\%.$

QUESTION THREE $[30]$

$1.$ The following figures are available for Intec $($Pty$)$ Ltd:

Actual $(2017)$ Budget $(2017)$

January February March April May

Sales $9600012000060000160000200000$

Purchases $100000500001600008400060000$

Sales commission $4006001200800400$

Wages $800800800??$

$2.40\%$ of all sales are for cash.

$3.35\%$ of all purchases are for cash.

$4.$ Collection from debtors are as follows:

$20\%$ is collected in the month of the sale and $2\%$ discount is granted on these

collections.

$60\%$ is collected in the month following the month of sale.

$15\%$ is collected in the second month following the month of sale.

The remaining $5\%$ is written off as a bad debt.

$5.$ Intec $($Pty$)$ Ltd will make an investment of R$50000$ in fixed deposit on $01$ April $2017.$

$6.$ Interest of R$500$ per month on the fixed deposit is expected to be received from

$30$ April $2017.$

$7.$ Creditors are paid $2$ months after date of invoice.

$8.$ Rent expense amounts to R$8000$ per month and is payable on the first day of each

month.

$9.$ Wages will be increased by $10\%$ in April and will increase by a further $5\%$ in May

$2017.$

$10.$ A new machine is expected to be purchased for R$10000$ cash in May $2017.$

$11.$ Commission is paid to sales personnel in the month following the month in which it

was earned.

$12.$ On $31$ March $2017,$ Intec $($Pty$)$ Ltd had a bank overdraft of R$28000.$

Required:

$3\mathrm{.}1.$ Prepare the debtors$$ collection schedule for April and May $2017.(10)$

$3\mathrm{.}2.$ Prepare the cash budget for April and May $2017.(20$