• Neha Wholesalers supplied you with the following projected information: 1. Expected sales are as follows:

•  August September October

  R350 000 R280 000 R300 000

        2. Cash sales are expected to be 50% of total sales. The balance is on credit.

  3. Debtors are expected to settle their accounts as follows:

  40% in the month of the sale 60% one month after the sale

  4. Expected purchases are as follows:

    August September October

  R100 000 R 40 000 R 50 000

        5. All purchases are on credit. Creditors are paid one month after the purchases less 10% discount.

  6. Rent expenses amount to R7 000 per month, Rent will increase by 15% from 1 October.

  7. Selling expenses are expected at 1% of total sales and are paid during the month of sales.

  8. Insurance amounts to R360 000 per annum, payable monthly.

  9. The owner intends making a cash drawings of R5 000 each month.

  10. Interest on fixed deposit of R2 000 is due on 1 September.

  11. The bank balance on 31 July is expected to be R25 000 favourable.

  Required:

  1.1 The Debtors collection schedule for August, September and October. (8) 1.2 The Cash budget statement for August, September and October. (17)