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QUESTION 4 ( 2 0 Marks ) REQUIRED Prepare the following for April, May and June 2 0 2 5 : 4 . 1 Debtors
QUESTION
Marks
REQUIRED
Prepare the following for April, May and June :
Debtors Collection Schedule
marks
Cash Budget.
marks
Note: The items that comprise General and administrative expenses must be shown separately.
INFORMATION
Bentall Limited is a retail outlet that is formulating its plans for the first half of The following information is available:
The figures below show the expected sales values of the products excluding discounts:
tableRJanuaryFebruaryMarchAprilMayJune
Seventy percent of the sales is for cash and the balance is on credit. Customers who purchase for cash are entitled to a discount of Forty percent of the credit sales is usually collected in the month of the sale and these debtors receive a discount. The balance is collected in the month after the sale.
The products are sold at cost plus and a fixed inventory level of R is maintained at the end of each month. All purchases are on credit and creditors are paid three months after the purchase.
Labour costs are estimated to equal of the current month's sales excluding discounts These are paid for in the applicable month.
General and administrative expenses are projected to be R for Except for property taxes and directors' fees all other expenses are incurred evenly throughout the year. Property taxes are paid in four equal instalments in the last month of each quarter. Directors' fees are expected to increase by with effect from May General and administrative expenses comprise the following:
tableRDirectors fees,AdvertisingProperty taxes,InsuranceElectricity and water,DepreciationTotal
A company tax payment will be made on April based on of the estimated profit of R for the financial year. The company's tax rate is
The closing bank balance on March is expected to be Rj
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