Aged debtors budget q$1$ q$2$ q$3$ q$4$

Sales $2,900,000600,000900,000800,000600,000$

$\%$ Debtors Sales $50\%50\%50\%50\%$

Total Debtors $100\%300,000450,000400,000300,000$

Current $65\%195,000292,500260,000195,000$

$30$ days $20\%60,00090,00080,00060,000$

$60$ days $12\%36,00054,00048,00036,000$

$90$ days $3\%9,00013,50012,0009,000$

Review the above budget and provide two recommendations for improvement to improve cash flow. The organisation offers $30$ days terms to debtors, does not train staff regarding credit terms, there is no strict adherence to credit terms and stock is expensive to hold in lease premises, with stock going rusty which increases waste removal costs.