203 500 6. 7. 8. 4. 5. 9. 10. QUESTION 4 3. REQUIRED Use the following information provided by Canon Enterprises to answer the following questions: 4.1 Prepare the Debtors Collection Schedule for April and May 2021. 4.2 Prepare the Cash Budget for April and May 2021. 4.3 Refer to your answer in question 4.2 and comment on the cash position of Canon Enterprises. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION The balance in the bank on 31 March 2021 is expected to be R25 000. Budgeted sales are as follows: 1. 2. Cash sales Credit sales February 2021 R170 000 R190 000 March 2021 R180 000 R230 000 Credit sales are normally collected as follows: 60% in the month after the sale; Cash purchases Credit purchases April 2021 R160 000 R220 000 40% two months after the sale. R20 000 will be invested in a fixed deposit account on 31 May 2021. Purchases are expected to be as follows: March 2021 R120 000 R130 000 April 2021 R140 000 R150 000 (20 Marks) (4 marks) (10 marks) (6 marks) May 2021 R200 000 R250 000 May 2021 R160 000 R155 000 Creditors are paid one month after the month of purchase. Wages and salaries are expected to amount to R70 000 for April 2021. Employees are expected to receive an increase of 8% in their remuneration with effect from 01 May 2021. A loan repayment of R30 000 will be made on 31 May 2021. Rent income amounts to R48 000 per year. Rent is received monthly. Other cash expenses are expected to amount to R15 000 for March 2021. These expenses are expected to increase by 5% each month.

(20 Marks) REQUIRED Use the followiry intaimation provided by Canon Erterprises to antwer the folowing questions: 4.1 Prepare the Debiors Collection Schedule for Apri and May 2021 4.2. Prepare the Cash Budget for April and May 2021 (4 marks) 43. Refer to your answer in question 42 and commert on the cash postion of Canch (t0 marks) Enterpises Note: Whore applicable, round off amourts to the nearest Rand. (6 marks) INFORMATION 1. The balance in the bank on 31 March 2021 is expected to be R25 000 . 2. Budgeted sales are as follows: 3. Credit sales are normally collected as follows. * 60% in the month affer the sale; - 40% two months after the sale. 4. R20 000 will be invested in a fixed deposit account on 31 May 2021 5. Purchases are expected to be as follows: 6. Creditors are paid one month afler the month of purchase. 7. Wages and salaries are expected to amount to R70 000 for April 2021. Employees are expected to receive an increase of 8% in their remuneration with effect from 01 May 2021. 8. A loan repayment of R30 000 will be made on 31May2021. 9. Rent income amounts to R48 000 per year. Rent is recelved monthly. 10. Other cash expenses are expected to amount to R15 000 for March 2021. These expenses are expected to increase by 5% each month