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REQUIRED Use the information provided below to prepare the following for Mustang Enterprises for January and February 2 0 2 4 . 3 . 1
REQUIRED
Use the information provided below to prepare the following for Mustang Enterprises for January and February
Debtors Collection Schedule marks
Cash Budget. marks
INFORMATION
The following information was supplied by Mustang Enterprises:
Mustang Enterprises expects to have an unfavourable bank balance of R on December
The monthly sales were projected as follows:
Units
November
December
Units
January
February
The selling price is R per unit excluding any discounts All the goods produced each month are
expected to be sold in the same month. Sixty percent of the sales is expected to be on credit and
the balance is for cash. Thirty percent of the cash sales is subject to a discount of
Credit sales are usually collected as follows:
in the month of sale, and these debtors receive a discount.
in the month after the sale, and the rest is usually written off as bad debts.
Manufacturing overheads are paid monthly. The overheads are expected to amount to R for
December including R for depreciation. Manufacturing overheads are expected to increase
by each month.
Labour costs amount to R per unit and are paid in the month in which they are incurred. Labour costs
per unit are expected to increase by with effect from February
Materials cost R per unit excluding any discounts All the materials are purchased for cash to take
advantage of a discount of
R is expected to be invested in a fixed deposit account on February Interest at
per annum is receivable monthly, commencing February
Selling and administrative costs are paid monthly and are expected to total R for February
after an increase of takes place on February
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