Guidelines: All answers must be typed out and workings must be showing.

QUESTION 5 REQUIRED Use the following information provided by Keyline Enterprises to prepare the: 5.1 Debtors Collection Schedule for February and March 2021. 5.2 Cash Budget for February and March 2021. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION 1. The bank balance on 31 January 2021 is expected to be R12 000 (favourable). 2. Budgeted cash sales are as follows: R January 2021 540 000 February 2021 504 000 March 2021 552 000 3. Cash sales are estimated at 60% of the total sales. These customers are entitled to a 10% discount. The balance of the sales is on credit. 4. Collections from credit sales are expected to be as follows: 30% in the month of the sale; 70% in the month after the sale. 5. The existing mark-up of 100% will be maintained during the budget period. Inventories are replaced during the month of sale. 6. Eighty percent (80%) of all purchases are for cash in order to take advantage of a 5% cash discount and the balance is on credit. Creditors are paid in full in the month following the purchase transaction. 7. Rent expense for March 2021 amounts to R33 000 and is 10% higher than the rent for February 2021. 8. Selling and administrative expenses as a percentage of sales (before any discounts) for January 2021 are estimated at R162 000. An increase of 2 percentage points is expected with effect from 01 February 2021. These expenses are payable during the month of sale. 9. Insurance amounts to R6 000 per month, payable monthly 10. An old motor vehicle is expected to be sold at a loss of R10 000 on 28 February 2021. The cost price of the vehicle is R150 000 and the expected accumulated depreciation on the date of sale is R120 000