QUESTION
REQUIRED
Use the information provided below to prepare the following for July and August :
Debtors Collection Schedule
Cash Budget.
INFORMATION
The following information was provided by Miller Enterprises:
Budgeted sales excluding discounts are as follows:
Twenty percent of the cash sales is subject to a discount of
Credit sales are normally collected as follows:
in the month of the sale, and these customers are entitled to a discount.
in the month after the sale.
R will be invested in a fixed deposit account on July at an interest rate of per annum. Interest will be received monthly commencing August
Purchases are expected to be as follows:
Creditors are paid in the month after the month of purchase.
Wages and salaries are expected to amount to R for August after a increase takes effect from August
Loan repayments of R are made at the end of each month. The balance in the loan account is expected to be R on July Interest at per annum is also
payable at the end of each month.
Rent income amounts to R per year. Rent is received monthly.
Other cash expenses are budgeted at R for June These expenses are expected to increase by each month.
