Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question four the following information for the 2

QUESTION FOUR The following information for the 2021 financial year is available for ABH...

90.2K

Verified Solution

Question

Accounting

QUESTION FOUR
The following information for the 2021 financial year is available for ABH Enterprises Ltd:
Additional information:
(a) Credit sales are collected as follows:
50% within 30 days (the next month)
25% within 60 days
15% within 90 days
10% uncollectible (bad debt)
(b) The following discount is given on sales:
10% on all cash sales
5% on credit sales paid within 30 days
Salaries, wages and other expenses are paid in cash.
(c) Other expenses include depreciation of R4000 per month. 55% of all purchases are on
credit and are paid for in the following month. The rest represents cash purchases. The
bank balance on 1 June 2021 is R200000. A dividend of R3000 will be declared on 31
August 2021.
Required:
Prepare the cash budget for the period 1 June to 31 August 2021.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Overall, boys achieve at higher levels academically because of higher societal expectations. True or false

Biology
1.2K views

40 O 75 50 O 100 Weekly spending on groceries 25 60 What percentage of...

Biology
1.2K views

You want to search for latent prints on a Styrofoam cup What type of fingerprint...

Basic Math
1.2K views

A group of first ten shoppers in TownMall have the following bodytemperature in Degree Celsius:...

Statistics
1.2K views

Explain why the t distribution has less spread as the number of degrees of freedom...

Accounting
1.2K views

Case A. Dr Pepper Snapple Group, Inc., is a...

Accounting
1.2K views

Each month you are paying a contract rate of $60. Contractor submits an adjustment demand...

Accounting
1.2K views

When using the objective-and-task method of IMC budgeting for multiple products and services, how often...

Accounting
1.2K views

gageNOWv2| Online teac| ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=assignment-take&kinprogress=false New Chrome avail WSO2 Identity Ser... ...

Accounting
1.2K views

Superior Company provided the following data for the year ended December 31 (all raw materials...

Accounting
1.2K views

$1000 at 3% compounded semiannually for 10 years?

Finance
1.2K views

Continuous compounding for the case in the following table, find the future value at the...