QUESTION 2 (20 Marks) The following information relates to Tea Limited, a company that wil commence business on 1 January 2021. The company is preparing its budget for 2021 and wil detail the projected activities for each quarter of the year Information 1. Cash at bank on 1 January 2021 amounted to R150 000 2. Projected sales per quarter for 2021 First quarter R750 000 Second quarter R825 000 Third quarter R930 000 Fourth quarter R980 000 Fifty percent (50%) of the sales are for cash and fifty percent (50%) are on credit. Cash customers are entitled to a 5% cash discount 3. Collection of credit sales: . 60% of the credit sales are collected in the quarter of the sale 30% is colected in the folowing quarter and the balance is written off as a bad debt. 4. Purchases for each quarter are expected to be as follows: First quarter R100 000 Second quarter R120 000 Third quarter R140 000 Fourth quarter R180 000 All purchases are on credit. 75% of the purchases will be paid for in the quarter of purchase and the remaining 25% in the following quarter 5. Fixed overheads total R200 000 per year and are paid for equaly each quarter. 6. Administrative expenses are paid for in the quarter in which they are incurred and are estimated at a total of R20 000 per quarter 7. An investment of R150 000 matures on 30 June 2021, and interest of R15 000 will also be received on this date Required 2.1 Prepare the Debtors Collection Schedule for the four quarters of 2021 2.2 Prepare the Cash Budget for the four quarters of 2021 (6 marks) (14 marks)