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DrwuuycuIF UIC WHITUS marcu prevo March 2018 April 2018 CASH RECEIPTS Cash sales 85 120 Cash from debtors 41 700? ? Fixed deposit and interest 91 800 TOTAL RECEIPTS CASH PAYMENTS 48 000 45 600 Cash purchases of inventory Payments to creditors Wages and salaries 33 250 17 200 18 232 Operating expenses 26 000 26 000 Nehicle 80 000 Drawings 12 000 12 000 TOTAL PAYMENTS 136450 Surplus (deficit) Bank balance beginning of C 200 Bank balance and of month Additional information: 30% of sales are on credit Actual total sales figures were as follows: o January 2018 R150 000 o February 2018 R140 000 o Debtors are collected as follows: 80% in the month after the sales transaction 18% in the second month after the sales transaction - Stock is replaced in the same month it is sold The business makes a profit of 60% on the cost price of its products 60% of inventory purchases are for cash Creditors are paid within 30 days (in the month after the purchase transaction) in order to receive 5% discount The fixed deposit matures on 30 April 2018. The fixed deposit was invested on 1 May 2017 with AB Bank at an interest rate of 8% p.a. payable annually. The amount in the budget includes the fixed deposit as well as the interest. P9 Required: 11.1 Calculate the expected cash sales for March 2018. (6) 11.2 Complete the Debtors Collection Schedule for March and April 2018. (13) 11.3 Determine the payment that will be made to creditors in April 2018. (5) 11.4 What amount of interest on fixed deposit will the business receive in April 2018? (5) 11.5 Sipho intends to give all of his employees the same percentage increase in April 2018. What percentage increase is he planning to grant them? (5) 11.6 Calculate the expected cash surplus/deficit for March 2018. (3) 11.7 Calculate the expected bank balance on 31 March 2018. (3) 11.8 Sipho is planning to purchase a delivery vehicle in April 2018. He is uncertain about financing and whether to apply for a loan. Interest on overdraft is charged at 21% p.a., while the interest on a loan will be approximately 13% p.a. Give him advice. (6) Paragraph BE DrwuuycuIF UIC WHITUS marcu prevo March 2018 April 2018 CASH RECEIPTS Cash sales 85 120 Cash from debtors 41 700? ? Fixed deposit and interest 91 800 TOTAL RECEIPTS CASH PAYMENTS 48 000 45 600 Cash purchases of inventory Payments to creditors Wages and salaries 33 250 17 200 18 232 Operating expenses 26 000 26 000 Nehicle 80 000 Drawings 12 000 12 000 TOTAL PAYMENTS 136450 Surplus (deficit) Bank balance beginning of C 200 Bank balance and of month Additional information: 30% of sales are on credit Actual total sales figures were as follows: o January 2018 R150 000 o February 2018 R140 000 o Debtors are collected as follows: 80% in the month after the sales transaction 18% in the second month after the sales transaction - Stock is replaced in the same month it is sold The business makes a profit of 60% on the cost price of its products 60% of inventory purchases are for cash Creditors are paid within 30 days (in the month after the purchase transaction) in order to receive 5% discount The fixed deposit matures on 30 April 2018. The fixed deposit was invested on 1 May 2017 with AB Bank at an interest rate of 8% p.a. payable annually. The amount in the budget includes the fixed deposit as well as the interest. P9 Required: 11.1 Calculate the expected cash sales for March 2018. (6) 11.2 Complete the Debtors Collection Schedule for March and April 2018. (13) 11.3 Determine the payment that will be made to creditors in April 2018. (5) 11.4 What amount of interest on fixed deposit will the business receive in April 2018? (5) 11.5 Sipho intends to give all of his employees the same percentage increase in April 2018. What percentage increase is he planning to grant them? (5) 11.6 Calculate the expected cash surplus/deficit for March 2018. (3) 11.7 Calculate the expected bank balance on 31 March 2018. (3) 11.8 Sipho is planning to purchase a delivery vehicle in April 2018. He is uncertain about financing and whether to apply for a loan. Interest on overdraft is charged at 21% p.a., while the interest on a loan will be approximately 13% p.a. Give him advice. (6) Paragraph BE

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