3.1 Calculate the amounts indicated by (a)–(c) on the Debtors' Collection Schedule provided in the ANSWER BOOK - NSC Accounting - Question 3 - 2021 - Paper 2

For (b), we calculate rent income for December 2021:

• Rent income = 20,056 / 100 × 100 = R 20,056
• Collected in December = R 18,400.

For payments to creditors in January 2022:

• Payments = 456,000 - 91,200 = R 364,800.

Thus, the amount to be recognized as payment in the Cash Budget is R 364,800.

For (c), the payment for cleaning services in January 2022:

• Payment = 15,510 × 100 / 165 = 9,870.

The answer for (c) is R 9,870.

1. Sales Target Adjustments: Brian can point out that with fewer sales staff, they can focus on higher-value customers, potentially increasing individual sales revenue.

   • For example, if 50 customers were serviced by 5 staff (10 customers per staff), the sales focus could increase revenue per staff from R 80,000 to R 90,000 each.

2. Higher Commission Rates: By having fewer staff, each salesperson can be incentivized with higher commission rates, leading to better overall earnings.

   • If commissions are changed from 10% to 15%, and total sales are R 1,000,000, each staff member would then earn a commission of R 150,000.

The repair staff members feel overworked due to the increased customer volume they need to handle:

• They are required to cater to an average of 68 customers, while they expected to manage only 30, resulting in a workload increase of 126%.
• Additionally, staff express dissatisfaction as their workload has become unmanageable, with service times often exceeding expectations, resulting in lower service quality.

1. Hire Additional Staff: To balance the workload, Brian should consider hiring additional staff, reducing the burden on current employees. This can lead to improved service quality and lessen employee stress.

2. Implement Shift Rotation: Introduce a shift rotation system to ensure that staff don’t feel overwhelmed. This allows for adequate rest, enhancing overall productivity.

Sales for November showed discrepancies when compared to the budgeted targets. Cash sales for November were 77% higher than anticipated, totaling R 685,760, thus highlighting that credit sales are becoming less favorable due to higher cash transactions. Brian noted the concern as only 20% of total sales came from credit, necessitating a reflection on credit policies.

Fuel expenses for the delivery vehicle were budgeted at 2.6% but spiked to 4.3%. This indicates a lack of control over fuel costs — the business needs to implement tighter monitoring on fuel usage. For consumable stores, they also exceeded budgets, underscoring inefficiencies in inventory management. Suggestions could be to introduce tighter controls on resource allocation to keep expenses within projected budgets.