QUESTION TWO The Following information is extracted from the books of Primex tyres: c. Actual information: i) ii) Cash sales Credit sales Cash purchases Credit purchases Bank overdraft Cash sales d. Information for budgeting purposes: iii) iv) Credit sales Cash purchases Credit purchases Salaries (before bonus and increase) Additional information: REGENT BUSINESS SCHOOL (RBS) - JANUARY 2022 2021 Sept. 31 500 24 600 7 800 21 900 HCMM - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE . 2021 Oct. 28 050 21 900 16 200 27 000 2021 Dec. 50% in the following month 15% in the second moth after sales took place 5% is unlikely to be collected It is estimated that creditors will be paid as follows: R38 040 in December 2021 83 700 Depreciation Estimated cash proceeds from disposal of assets Estimated cash purchase of equipment Other expenses (including salaries and interest on loan) 7 761 8 100 102 600 14 400 9 900 24 000 2022 Jan. 16 200 5 400 7 350 ? 1 200 6 000 It is estimated that debtors will pay their accounts as follows: 30% in the month of sales subject to 5% discount for early payment 6 399 [30] 2021 Nov. 38 400 33 600 43 500 68 100 19 000 2022 Feb. 33 300 23 400 6 600 9 000 ? 18 900 39 000 8 031 R16 620 in January 2022 R7 860 in February 2022 In January 2023 the employees will be pay a bonus of 80% of their monthly salary The interest rate in the loan is 12% per annum it has been agreed that the loan is to be increased form R180 000 to 210 000 on 31 January 2022. The interest is paid at the end of each moth 24 HCMM - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Kindly use the following template while preparing cash budget: Dec. 2021 CASH RECEIPTS Cash sales Cash receipts from debtors Assets disposal Loan received TOTAL RECEIPTS CASH PAYMENTS Cash purchases of stock Payment to creditors Salaries Equipment Other expenses Interest on loan TOTAL PAYMENT CASH SURPLUS(DEFICIT) CASH AT THE BEGINNING OF PERIOD CASH AT THE END OF PERIOD Jan. 2022 Required: 2.1 Complete the Debtors' Collection Schedule which shows the amount of the tyres dealer will receive from debtors from 1 December 2021 to 28 February 2022. (6) 2.2 Prepare the cash budget for December 2021 and January 2022 (24)