Course ; Management Accounting

10 iSIMS - Moneague College X pot Exam paper (1).pdf X + X CA File | C:/Users/chris/Downloads/Exam%20paper%20(1).pdf 7 of 10 Q + Q [ Page view | A Read aloud | V Draw ~ Highlight Erase P Question 1 a. List three (3) advantages of a cash budget. (3 marks) b. ABC Company has a cash balance of $75,000 at the beginning of March and having regard to the following information. Creditors give 1 month credit Salaries are paid in the current month Fixed overheads are paid one month in arrears and include a charge for depreciation of $5,000 per month Variable overheads are paid two months in arrears Credit sales are settled as follows: 40% in the month of sale, 45% in the next month and 12% in the following month. The balance represents bad debts. Month Cash Sales Credit Sales Purchases $ January 74,000 55,200 February 82,000 61.200 March 20,000 80.000 60,000 April 22.000 90,000 69.000 May 25,000 100,000 75,000 Salaries Fixed Overheads Variable Overhead $ January 9.000 30,000 45.000 February 9,000 30,000 50,000 March 9.500 30,000 55,000 April 9.500 32,000 60,000 May 10.000 32,000 70.000 Required: i. Prepare the Debtors collection schedule for ABC Company for March to May (6 marks) ii. Prepare the Cash Budget for March, April and May (16 marks) (Total 25 marks) The Council of Community Colleges of Jamaica Page 11:29 AM Type here to search a W ENG 6/4/2021