Refer to Information G - NSC Accounting - Question 6 - 2016 - Paper 1

The two items that would not appear in a Projected Income Statement are:

1. Cash from debtors: This is a cash flow item related to cash collections and does not affect income directly.
2. Fixed deposit maturities: These are not part of income but rather represent cash inflows from investments.

To complete the Debtors' Collection Schedule, we calculate the collection amounts based on the given credit sales percentages and months. The total credited sales for October will reflect the anticipated collections.

The missing amounts are calculated as follows: (a) Cash sales for September: To find cash sales for September, use: $288000 imes 40\% + 172800\times 10\%$ which equals $115,200. (b) **Payments to creditors for October**: Applying the formula gives$134,400. (c) Directors' fees for October: The calculation returns $194,400. (d) **Repayment of loan**: The repayment calculated is$6,325.

The change in payment method has resulted in a decrease in salaries from $40,000 to$12,000 for salespersons. However, they now receive a commission totaling $66,150. This results in a total earnings of$78,150, which is 95.4% of their previous salary. This method incentivizes higher sales. The business benefits as actual sales have increased over the budget by $201,600 (from$288,000 to $489,600), indicating overall improved performance.

The directors are not worried about the overspending on packing materials because:

1. Sales were over 70% above budget, indicating a significant increase in revenue that offsets the additional costs.
2. The actual packing materials used were only 3.5% of total sales, which is a reasonable proportion relative to the overall financial performance.