Please use the information provided to prepare 1. Debtors Collection Schedule 2. Cash Budget INFORMATIONThe following information was provided by Intel Enterprises:The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).Credit sales are expected to be as follows:1.2.3.4.5.6.December 2022R576 000January 2023December 2022R540 000Budgeted purchases of inventory are as follows:R1 000 000Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.January 2023February 2023R800 000R648 000February 2023R920 000Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase. 7.8.9.10.The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with effect from 01February 2023 for those employees who presently make up 80% of the salary bill. The salaries of theremaining 20% are expected to increase by 6%.Interest at 18% per annum on the loan balance is paid at the end of each month. The loan balance on 31December 2022 was R400 000 and a capital repayment of R100 000 will be made on 01 February 2023.Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the yearended 31 January 2023 reflected the rental as R180 000 per annum. The rental will increase by 10% witheffect from 01 February 2023.Other operating expenses are budgeted at R40 000 per month. This amount includes R5 000 fordepreciation. Operating expenses are paid for in the month in which they are incurred.

Cash Budget- An projected cash input and outflow over the budgeted time are shown in a cash budget.…

Answered: INFORMATION The following information…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Please use the information provided to prepare 1. Debtors Collection Schedule 2. Cash Budget

INFORMATION
The following information was provided by Intel Enterprises:
The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).
Credit sales are expected to be as follows:
1.
2.
3.
4.
5.
6.
December 2022
R576 000
January 2023
December 2022
R540 000
Budgeted purchases of inventory are as follows:
R1 000 000
Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers
receive a 10% discount.
Credit sales are normally collected as follows:
* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.
* 65% in the following month
The rest is usually written off as bad debts.
January 2023
February 2023
R800 000
R648 000
February 2023
R920 000
Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.

7.
8.
9.
10.
The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with effect from 01
February 2023 for those employees who presently make up 80% of the salary bill. The salaries of the
remaining 20% are expected to increase by 6%.
Interest at 18% per annum on the loan balance is paid at the end of each month. The loan balance on 31
December 2022 was R400 000 and a capital repayment of R100 000 will be made on 01 February 2023.
Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the year
ended 31 January 2023 reflected the rental as R180 000 per annum. The rental will increase by 10% with
effect from 01 February 2023.
Other operating expenses are budgeted at R40 000 per month. This amount includes R5 000 for
depreciation. Operating expenses are paid for in the month in which they are incurred.

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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