4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER BOOK: 4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023. Depreciation will amount to R550 per month. 4.1.2 A fixed deposit of R90 000 will be invested on 1 July 2023. Interest at 9% p.a. will be deposited into the business bank account at the end of each month. 4.2 ALICE FURNISHERS (PTY) LTD The information relates to the budget period ending July 2023. REQUIRED: 4.2.1 Complete the Debtors' Collection Schedule for July 2023. 4.2.2 Calculate missing figures (i) to (iii) on the Cash Budget provided. 4.2.3 Salaries of workers: - Calculate the % increase that workers will receive in July 2023. - Give TWO reasons why you think that workers would be satisfied with this increase. 4.2.4 Advertising and delivery expenses: Refer to Information F. - Comment on the effectiveness of the advertising. Provide figures or calculations. - Alice is satisfied with the control over delivery expenses. Provide figures or calculations to justify her feelings. - Identify a different issue (problem) for EACH vehicle that confirms her concern. Provide figures or calculations to justify her feelings. - Provide TWO suggestions on how Alice can improve the efficiency of the vehicles.

NSC Accounting Debtors’ collection schedule: 4.1 Show the amounts for the fol

4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER BOOK: 4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023 - NSC Accounting - Question 4 - 2023 - Paper 2

Question 4

4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER ... show full transcript

Worked Solution & Example Answer:4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER BOOK: 4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023 - NSC Accounting - Question 4 - 2023 - Paper 2

Step 1

4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023. Depreciation will amount to R550 per month.

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Answer

In the Cash Budget, record the purchase of the computer under payments. The amount of R26,400 will be a cash outflow in the July column. In the Projected Statement of Comprehensive Income, record a depreciation expense of R550 per month, which will be deducted from the income in the corresponding period.

Step 2

4.1.2 A fixed deposit of R90 000 will be invested on 1 July 2023. Interest at 9% p.a. will be deposited into the business bank account at the end of each month.

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Answer

In the Cash Budget, note the R90,000 deposit under receipts for July. For the interest, calculate the monthly interest as follows:

$\text{Interest} = \frac{90,000 \times 9}{100 \times 12} = R675$

Record R675 as an inflow in the receipts section, reflecting the monthly interest deposit.

Step 3

4.2.1 Complete the Debtors' Collection Schedule for July 2023.

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Answer

In the Debtors' Collection Schedule, assume a 20% collection ratio for credit sales. Calculate the expected collections for July based on credit sales of R931,000:

$\text{Collections} = 931,000 \times 20\% = R186,200$

Ensure to include totals for April, May, June, and July accordingly.

Step 4

4.2.2 Calculate missing figures (i) to (iii) on the Cash Budget provided.

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Answer

For (i), calculate cash sales for July as:

$\text{Cash Sales} = 1,330,000 \times 30\% = R399,000$

For (ii), the loan amount in June 2023 can be calculated as:

$\text{Loan Amount} = 600,000 \times \frac{5,500}{12} \times \frac{1}{100} = R6,000$

For (iii), payment to creditors in July:

$\text{Payment} = 910,000 \times 80\% = R728,000$

Step 5

4.2.3 - Calculate the % increase that workers will receive in July 2023. - Give TWO reasons why you think that workers would be satisfied with this increase.

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Answer

To calculate the percentage increase in workers' salaries for July:

$\text{Percentage Increase} = \frac{(182,320 - 172,000)}{172,000} \times 100\% = 6.0\%$

Reasons workers might be satisfied with the increase:

The wage increase could help meet rising living costs due to inflation.
It reflects the company's efforts in recognizing employees' contributions and improving morale.

Step 6

4.2.4- Comment on the effectiveness of the advertising. Provide figures or calculations. - Alice is satisfied with the control over delivery expenses. Provide figures or calculations to justify her feelings. - Identify a different issue (problem) for EACH vehicle that confirms her concern. Provide figures or calculations to justify her feelings. - Provide TWO suggestions on how Alice can improve the efficiency of the vehicles.

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Answer

Regarding the effectiveness of advertising, the company should evaluate the return on advertising spend, which achieved a 15% increase in sales. This implies effective advertising. For delivery expenses, Alice can justify her satisfaction based on reduced delivery costs of R54,100 versus a budget of R60,000, saving R5,900.

For each vehicle:

Vehicle 1 shows high maintenance cost (R9,500). Suggest regular maintenance to prevent higher long-term costs.
Vehicle 2 needs a fuel-efficient model replacement to reduce expenses.

Improvements:

Implement a route optimization system to reduce fuel usage.
Regularly schedule vehicle maintenance to avoid breakdowns.

4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER BOOK: 4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023 - NSC Accounting - Question 4 - 2023 - Paper 2

4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023. Depreciation will amount to R550 per month.

4.1.2 A fixed deposit of R90 000 will be invested on 1 July 2023. Interest at 9% p.a. will be deposited into the business bank account at the end of each month.

4.2.1 Complete the Debtors' Collection Schedule for July 2023.

4.2.2 Calculate missing figures (i) to (iii) on the Cash Budget provided.

4.2.3 - Calculate the % increase that workers will receive in July 2023. - Give TWO reasons why you think that workers would be satisfied with this increase.

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