Unit 3 (chapter 14) solutions.xlsx

TEE TREE LTD
STEP 1 SALES SPLIT

JAN FEB MAR APR
TOTAL SALES R 120,000.00 R 180,000.00 R 165,000.00 R 150,000.00
CREDIT 80% R 96,000.00 R 144,000.00 R 132,000.00 R 120,000.00
CASH 20% R 24,000.00 R 36,000.00 R 33,000.00 R 30,000.00

STEP 2 DEBTORS COLLECTION

MONTH CREDIT SALES % JAN % FEB %
JAN R 96,000.00 80% 20%
FEB R 144,000.00 80%
MAR R 132,000.00
APR R 120,000.00
TOTAL COLLECTIONS


STEP 3 PURCHASES SPLIT

JAN FEB MAR APR
TOTAL PURCHASES R 90,000.00 R 60,000.00 R 120,000.00 R 30,000.00
CREDIT 100% R 90,000.00 R 60,000.00 R 120,000.00 R 30,000.00
CASH 0% R - R - R - R -

STEP 4 CREDITORS PAYMENTS

MONTH CREDIT SALES % JAN % FEB %
JAN R 90,000.00 50% R 45,000.00 50% R 45,000.00
FEB R 60,000.00 50% R 30,000.00 50%
MAR R 120,000.00 50%
APR R 30,000.00
TOTAL COLLECTIONS


CASH BUDGET OF TEE TREE LTD

OPENING BALANCE R 21,800.00 R 1,200.00

Plus cash receipts R 167,400.00 R 166,400.00
Cash sales R 33,000.00 R 30,000.00
Debtors collection R 134,400.00 R 134,400.00
Other receipts:
Furniture sales R - R 2,000.00

Cash available for payments R 189,200.00 R 167,600.00

, Less cash payments: R 188,000.00 R 138,000.00
Cash purchases R - R -
Creditors payments R 90,000.00 R 75,000.00
Other payments:
Overhead expenses R 26,000.00 R 31,000.00
Wages R 34,000.00 R 32,000.00
computer bought R 38,000.00
Closing balance surplus (deficit) R 1,200.00 R 29,600.00