Clucsnou 3 [25 Marks } REQUIRED Use the information provided below to prepare the following for Hemrock Ltd for August and September 2021. Use separate monetary columns for each month . 5.1 Debtors Collection Schedule {5 marks} 3.2 Cash Budget [10 marks } lNFDHMA'I'IH The following information was provided by Hemrock Ltd to assist in the preparation of ii: cash budget for August and September 2021: 1. The bank balance on 51 July 2021 is expected to be R45 000 lcredit :I. 2. Sixty percent 5096} of all sales are Jfor cash ;the balance is on credit _ Cash sales for June and July 2021 are expected to be R240 000 and R300 000 respectively . Cash sales are expected to increase by 5% per month while credit sales are expected to increase by 10% per month . Sixty percent (60%] of the credit sales is expected to be collected in the month of the sale for a cash discount of 2%. Thirty five percent 135%] is usually collected one month after the sale and the rat is written off as irrecoryerable S. Hemroclc Ltd sells it: goods at cost plus 100 '56. The goods that are sold each month are replaced in the same month . All purchases are on credit and creditors are paid in the month after the purchase 4. Salaries and wages are expected to cost R32 500 for September 2021 after a 10% increase takes effect from 01 September 2021 . 5. Advertising expenses are expected to be 5'35 of the monthly sales , and are paid one month later . 5. Equipment with a cost price of R200 000 is expected to be purchased during August 2021. A deposit of 10% will be paid in August and the balance payable in six equal instalments commencing September 2021. 7'. A long-term loan of R130 000 at 12% per annum interest is to be raised on 01 September 2021 . Interest is payable quarterly in advance with the first interest payment to be made on 01 September 2021 . B. Other expenses , including depreciation of R4 000, are expected to amount to R46 000 each month and payments are made monthly . 9. An interim dividend of 5 cents per share is expected to be paid on 31 August 2021 . The authorised share capital of Hemrock Ltd consists of 300 000 ordinary shares of which