QUESTION 2 (20 Marks) 1. 2. INFORMATION The cash balance on 31 January 2021 is expected to have a debit balance of R10 000. Total sales are expected to be as follows: January 2021 February 2021 March 2021 R600 000 R500 000 R560 000 3. Cash sales usually make up 60% of the total sales. The balance of the sales is on credit. Credit sales are normally collected as follows: 4. 6. 60% in the month of the sale; 40% in the month after the sale. Expected purchases of inventory are as follows: Cash purchases January 2021 R260 000 February 2021 R180 000 March 2021 R190 000 Credit purchases R210 000 R200 000 R210 000 8. 6. Creditors are paid in the month after the purchase. 7. The monthly salaries amount to R150 000. Salaries are expected to increase by 10% with effect from 01 March 2021. Interest, calculated at 6% per annum on the fixed deposit (investment) account of R50 000, is receivable at the end of each month. 9. Part of the building is sublet to a tenant. The lease agreement for the year ended 29 February 2021 reflected the rental at R10 000 per month. The rental will increase by 12% on 01 March 2021. 10. Other cash operating expenses are expected to amount to R90 500 for January 2021. An increase of R1 500 is expected each month thereafter. REQUIRED Use the following information provided by AVIS Limited to prepare the 2.1 Debtors Collection Schedule for February and March 2021. (4 marks) 22 Cash Budget for February and March 2021. (16 marks) Note: Use separate amount columns for each month. Where applicable, round off amounts to the nearest Rand