INFORMATION

Sebata Traders is busy with planning for the second half of $2024.$ It has provided the following information:

$1.$

Credit sales:

Actual

Projected

May

June

July

August

September

R$420000$

R$444000$

R$456000$

R$480000$

R$504000$

Credit sales represent $60\%$ of total sales. Cash sales customers are given a $10\%$ discount.

$2.$

Credit sales are collected as follows:

$$

$70\%$ one month after sale.

$$

$25\%$ two months after sale.

$$

$5\%$ is written off as irrecoverable.

$3.$

Cash purchases were as follows:

Actual

Projected

May

June

July

August

September

R$140000$

R$150000$

R$165000$

R$180000$

R$210000$

Cash purchases represent $50\%$ of total purchases.

$4.$

Credit purchases are paid one month after purchase.

$5.$

A loan of R$80000$ will be taken on $1$ July. Instalments of R$2500$ will be made on this loan monthly from $30$ July.

$6.$

Rent of R$8000$ per month has been received until $30$ June. This rental will be increased by $10\%$ with effect from $1$ August.

$7.$

The water and electricity account for June was R$12000.$ This is expected to increase by $8\%$ from $1$ July.

$8.$

Annual rates of R$22000$ are payable in two equal instalments on $1$ January and $1$ July of every year.

$9.$

A delivery vehicle costing R$120000$ will be purchased on $1$ August. A deposit of $10\%$ will be paid on this date and the remaining balance will be repaid in $10$ equal instalments beginning on $1$ September.

$10.$

Fuel expenses of R $7200$ was incurred in June. It is expected that this will increase by $5\%$ month on month from $1$ July.

$11.$

The owner draws monthly the following from the business:

$$

Trading stock R$4000$

$$

Cash R$3000$

$12.$

The company rents a warehouse and pays an amount of R$12000$ every month. The landlord has indicated rental will be increased to R$14000$ from $1$ September.

$13.$

Dividends of R$30000$ are expected to be received in September for shares held in a listed company.

$14.$

The company will have a favourable bank balance of R$122500$ on $30$ June.

REQUIRED:

$($use separate columns for each month$)$

$4\mathrm{.}1$ Prepare the debtors collection schedule for July, August and September. $(4$ marks$)$

$4\mathrm{.}2$ Prepare the Cash Budget for July, August and September