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

(b) For the cash budget, we need to calculate rent income:

1. Rent income for December 2021:

   
   Rent income = R20,056 × \frac{100}{109} = R18,400

   Which means the cash received from rent is R18,400.

2. Payment to creditors in January 2022:

   
   Payment = R456,000 - R91,200 = R364,800

   This leads to a total debt clearing amount of R364,800.

3. Payment for cleaning services:

   
   Cleaning service payment = R15,510 × \frac{100}{165} = R9,870

1. Reduced Working Pressure: Brian can explain that with one less staff member, the workload balance can be distributed more efficiently, resulting in better performance without overloading the remaining team members.

2. Increased Salary Potential: With an optimized sales process, the remaining staff members may have a higher chance to earn commissions as they can focus on more lucrative sales. This approach could potentially lead to increased motivation.

Repair staff are dissatisfied because:

1. Overworked: The expected number of repairs per staff member is significantly higher than before, leading to burnout and reduced quality of service. For example, average repairs expected were 70, while the actual seen were 136.

2. Inadequate Compensation: The repair staff feel undervalued as their commission structure is less than that of sales staff, which is demotivating.

1. Hiring Additional Staff: Consider expanding the team to manage workloads effectively without causing burnout or stress among current employees.

2. Flexible Work Arrangements: Implement flexible hours or shifts for staff which can help improve satisfaction and balance their workloads more effectively.

In November 2021, cash sales are lower than budgeted at R798,000 compared to R336,800 expected, an underperformance by 7.3%. Credit sales were also significantly lower at just 20% of total sales. This decline raises concerns for Brian as it suggests either decreased consumer confidence or potential issues in the sales strategy.

Fuel control for the delivery vehicle was budgeted at R20,800 but actual figures reached only R9,000, indicating a significant overestimation of expected expenses. Additionally, consumable stores for repairs were budgeted at R8,000 and actual spending matched expectations, suggesting strict control over repair costs.