90.2K

Verified Solution

Link Copied!

3. Credit sales usually make up 40% of the latal sales. Cash sales make up the balance. Cash customers receive a 105 dircount. 4. Credit saies are normaly collected as foliow: * 30% in the moeth in which the transaction tases place, and these customers are entiled to a 5 th discount. " 65W in the following month The rest is usualy withen ofl as bad sebis. 5. Budgeted purchases of inventory are as folcous: 6. Fify percent (50\%) of fre purchases are for cash. The renainder is paid in the morth atter the purctase. 7. The monthly salaries amount so R150 000. Salares are expected to increase by 95 with ethect from 01 February 2023 for those employets whe preserthy nake up BOS, of the salary bill. The salaries of the remaining 20% are expecled to increase by b5: 8. Interest at 18% per anum on the iban bibace is paid z the end of each monh. The loan balance on 31 December 2022 mas R400 000 and a capleal neparyent of 9100000 wil be made on 01 February 2023. 4. Credit sales are normally collected as follows: * 30% in the month in which the transaction takes place, and these customers are entited to a 5% discount. * 65% in the following month The rest is usually written off as bad debts. 5. Budgeted purchases of inventory are as follows: 6. Fitty percent (50%) of the purchases are for cash. The remainder is paid in the month ater the purchase. 7. 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%. 8. 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 R100000 will be made on 01 February 2023. 9. 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 R180000 per annum. The rental will increase by 10% with effect from 01 February 2023. 10. Other operating expenses are budgeted at R40000 per month. This amount includes R5 000 for depreciation. Operating expenses are paid for in the month in which they are incurred

Answer & Explanation Solved by verified expert

See Answer