2016 cm3652 20 x O File | C:/Users/ARMS.. * N . . You have been instructed to prepare the cash budget for January 2011 for Baines Heuth Centre, a distributor of exercise equipment. The following information is available about the company's operations: The cash balance on 1 January 2011 will be N$40 000 Actual sales for November 2010 and December 2010 and expected sales for January 2011 are as follows: November 2010 December 2010 N$ NS 65 000 70 000 400 000 525 ODO Cash sales Credit sales January 2011 N$ B3 000 600 000 Sales on account are collected over a three month period in the following ratio 20% collected in the month of sale o 60% collected in the month following sale o 18% collected in the second month following sale The remaining 2% is uncollectible Purchases of inventory will total NS2B0 000 for January 2011. 30% of a month's invento y purchases are paid during the month of purchase. The accounts payable remaining from December's inventory purchases total N$181 000, all of which will be paid in January 2011 Selling and administrative expenses are budgeted of N5430 000 for January 2011. Of this amount. N$ 50 000 is for depreciation MEX "Question and X cam3652 20 x x 0 O File | C:/Users/ARMS... A new web server for the marketing department costing N576 000 will be purchased for cash during January 2011, and dividends totalling N$9 000 wil be paid during January 2011 The company must maintain a minimum cash balance of N$20 000. An open line of credit is available from the company's bank as required. You are required to prepare a cash budget for January 2011. Show supporting schedules for the collections from debtors (credit sales) and for the payments to creditors (credit purchases) (16 Marks)