1. Langa Ltd purchased new machinery three years ago for R7 million. The machinery can be sold today for R3,3 million. Adonis's current statement of financial position shows net non-current assets of R4 million, current liabilities of R2.3 million and net working capital of R900 000. If all the current accounts were liquidated today, the company would receive R2,8 million cash.

What is the book value of Adonis's assets today? What is the market value? [2]

1. R4.9 million; R3.3 million
2. R7.2 million; R6.1 million
3. 4.9 million; R3.5 million
4. R5.5 million; R3.3 million

2. following is the sales budget for Sikelela (Pvt) Ltd for the first quarter of 2021.

	January	February	March
Sales Budget	R150 000	R188 000	R220 000

Credit sales are collected as follows

• 65% in the month of the sale
• 20% in the month after the sale
• 15% in the second month after the sale

If the accounts receivable balance at the end of the first quarter was R57 000 (R41 000 of which were uncollected December sales).

1. Compute the sales for December [2]
2. Compute the cash collections from sales for each month from January through March.

[3]

Note: The first-quarter sales that were collected include 65%, of which 35% were not collected. Therefore, to determine the sales for December, the simple proportion is used.

1. i. R117 142,86 ii. R136 928,57; R169 771,43; R203 100,00
2. i. R106 666,67 ii. R117 142,86; R136 928,57; R176 747,89
3. i. R145 243,85 ii. R187 152,66; R176 768,67; R196 787,99
4. i. R134 254,66 ii. R169 771,43; R187 152,66; R203 100,00