The information provided below was taken from the records of Chotoo Projects for the financial year ended 31 May 2020. Extract of statement of comprehensive income for the year ended 31 May 2020 R Revenue 480 000 Direct costs 240 000 Rent income 150 000 Advertising 4 800 Salaries and wages 90 000 Rates and taxes 1 200 Other operating expenses 80 000 Additional information 1. Revenue is calculated as direct cost plus 25%. 2. Revenue is divided equally each month. Revenue is expected to increase by 18% for the financial year ending 31 May 2021. POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT – ACADEMIC AND ASSESSMENT CALENDAR REGENT BUSINESS SCHOOL (RBS) January 2021 17 3. Fifty percent (50%) of the revenue is for cash and the balance is on credit. Debtors normally pay their accounts as follows: • 40% in the month of the invoice, and these debtors are entitled to a 5% discount; • 55% one month after the invoice; The balance is usually written off as bad debts. 4. Purchases for June and July are expected to be 30 000 per month. All purchases are for cash. 5. In terms of the lease agreement rent is received monthly. The rent for the year ending 31 May 2021 is expected to be 12% more than the previous twelve months. 6. Advertising is paid for monthly and is estimated to be 8% of each month’s sales. 7. Salaries and wages will increase by 12% with effect from 01 July 2020. 8. Rates and taxes are paid in one instalment for the year during July 2020. Rates are calculated at 5% of the value of the premises. The premises are valued at R500 000. 9. Other operating expenses are expected to increase by 7% and are spread evenly throughout the year. Operating expenses are paid for in the month in which they are incurred. 10. On 31 May 2020 a Debit bank balance of R6 000 appeared in the ledger of Chotoo Projects. Required: Prepare each of the following for June and July 2020 from the information provided above. (Provide separate monetary columns for each month.) 4.1 Debtors collection schedule 4.2 Cash budget
The information provided below was taken from the records of Chotoo Projects for the financial
year ended 31 May 2020.
Extract of statement of comprehensive income for the year ended 31 May 2020
R
Revenue 480 000
Direct costs 240 000
Rent income 150 000
Advertising 4 800
Salaries and wages 90 000
Rates and taxes 1 200
Other operating expenses 80 000
Additional information
1. Revenue is calculated as direct cost plus 25%.
2. Revenue is divided equally each month. Revenue is expected to increase by 18% for the
financial year ending 31 May 2021.
POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT – ACADEMIC AND ASSESSMENT CALENDAR
REGENT BUSINESS SCHOOL (RBS) January 2021 17
3. Fifty percent (50%) of the revenue is for cash and the balance is on credit. Debtors
normally pay their accounts as follows:
• 40% in the month of the invoice, and these debtors are entitled to
a 5% discount;
• 55% one month after the invoice;
The balance is usually written off as
4. Purchases for June and July are expected to be 30 000 per month. All purchases are for
cash.
5. In terms of the lease agreement rent is received monthly. The rent for the year ending 31
May 2021 is expected to be 12% more than the previous twelve months.
6. Advertising is paid for monthly and is estimated to be 8% of each month’s sales.
7. Salaries and wages will increase by 12% with effect from 01 July 2020.
8. Rates and taxes are paid in one instalment for the year during July 2020. Rates are
calculated at 5% of the value of the premises. The premises are valued at R500 000.
9. Other operating expenses are expected to increase by 7% and are spread evenly
throughout the year.
Operating expenses are paid for in the month in which they are incurred.
10. On 31 May 2020 a Debit bank balance of R6 000 appeared in the ledger of Chotoo
Projects.
Required:
Prepare each of the following for June and July 2020 from the information provided above.
(Provide separate monetary columns for each month.)
4.1 Debtors collection schedule
4.2
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