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Additional Information: 1. Salaries Monthly salaries for all 11 staff members will be increased with effect from 1 November 2020. The increase will be as follows: The manager will receive an increase of 30 % on his present monthly salary of R 6 000 from 1 November 2020. The ten shop assistants, who receive equal salaries, will each receive an increase of R300 per month from 1 November 2020. An additional shop assistant will be employed from 1 December 2020 at the same increased salary as the other shop assistants. 2. Loan and interest 3. A short term loan of R 400 000, will b received from Beta Bank on 31 August 2020, is to be repaid in four equal instalments every three months - the first instalment must be paid on 30 November 2020. Interest is paid monthly by cheque. Purchase of stock and mark-up All goods are sold at a mark-up of 50% on cost. Goods are replaced monthly to maintain a fixed stock level. Goods are purchased as follows: 25% cash and 75% on credit. All credit purchases are settled during the following calendar month. Debtors and sales: 4. The owner decides to start selling goods on credit with effect from 1 November 2020 Credit sales are expected to comprise 40% of total sales. Debtors are expected to settle their accounts as follows: 25% of debtors will settle their accounts in the same month of sale, subject to 5% cash discount 68% of debtors will settle their accounts in the month following the sale 7% of debtors' accounts are expected to comprise bad debts. 2. Calculate the following figures that would appear in the Cash Budget: 2.1 Wages and Salaries for November and December. (3) 2.2 Interest on Loan for November and December. (3) 3. (5) (4) 4. 5. Prepare the Debtors Collection Schedule for November and December. Calculate the payments to creditors for November and December. Advertising is budgeted at a fixed percentage of total sales each month. 5.1 Calculated the budgeted advertising for October and November. 5.2 The directors are unsure if they are budgeting properly for advertising. What is your opinion? Explain briefly. (4) (3) 6. The shop assistants are considering gong on a strike as hey are not happy with the increases they will be receiving. Give the following: 6.1 ONE point to support their opinion. (2) 6.2 ONE point against their opinion (2) Support your answers with evidence obtained from the information given