[25] QUESTION FOUR The Following information is extracted from the books of Primex tyres: a. Actual information: 2019 2019 Sept. Oct. Cash sales 31 500 28 050 2019 Nov. 38 400 Credit sales 24 600 21 900 33 600 Page 3 of 5 7 800 16 200 43 500 Cash purchases Credit purchases Bank overdraft 21 900 27 000 68 100 19 000 b. Information for budgeting purposes: 2019 2020 2020 Dec. Jan. Feb. Cash sales 16 200 83 700 102 600 33 300 23 400 14 400 8 100 5 400 6 600 7 350 9 000 9 900 24 000 ? ? Credit sales Cash purchases Credit purchases Salaries (before bonus and increase) Depreciation Estimated cash proceeds from disposal of assets Estimated cash purchase of equipment Other expenses (including salaries and interest on loan) 1 200 18 900 6 000 39 000 7 761 6 399 8 031 i) It is estimated that debtors will pay their accounts as follows: 30% in the month of sales subject to 5% discount for early payment 50% in the following month 15% in the second moth after sales took place 5% is unlikely to be collected . ii) It is estimated that creditors will be paid as follows: R38 040 in December 2019 R16 620 in January 2020 R7 860 in February 2020 In January 2020 the employees will be pay a bonus of 80% of their monthly salary The interest rate in the loan is 12% per annum it has been agreed that the loan is to be increased form R180 000 to 210 000 on 31 January 2020. The interest is paid at the end of each moth iii) iv) Page 4 of 5 Required: 4.1 Complete the Debtors' Collection Schedule which shows the amount of the tyres dealer will receive from debtors from 1 December 2019 to 28 February 2020 (8) Required: 4.1 Complete the Debtors' Collection Schedule which shows the amount of the tyres dealer will receive from debtors from 1 December 2019 to 28 February 2020 (8) 4.2 Prepare the cash budget for December 2019 and January 2020. (17)