QUESTION 2 CASH BUDGET (15) Use the information supplied below to prepare the Cash Budget of FLASH TRADING for the period 01 January to REQUIRED 28 February 2019. INFORMATION 1. Sales and Purchases Budgeted 2019 Actual 2018 Details January February November December Cash sales 325 000 375 000 350 000 Credit sales 375 000 450 000 500 000 600 000 Cash purchases 260 000 300 000 240 000 240 000 Credit purchases Sundry Expenses 280 000 250 000 330 000 265 000 14 500 ? ? 15 000 2. Cash sales for February 2019 is expected to be 20 % greater than the January 2019 cash sales. 3. The Debtors' Collection Schedule indicated the following amounts that will be collected from debtors during the budget period. R287 500 in January 2019 and R390 000 in February 2019. 4. Creditors are paid in full one month after the month of purchase. 5. With effect from 01 February 2019, he rent of R5 000 per month will increase by 8 %. The monthly salaries of R72 000 will also increase by 10 % with effect from 01 January 2019. 6. Monthly interest of 12 % p.a. is received on the fixed deposit of R80 000, maturing on 7. 01 June 2019. 8. Sundry expenses are expected to increase by R500 each month. Interest on the loan of R180 000 at 18% p.a. is paid monthly. However a loan repayment of R60 000 wil be made on 01 February 2019. 9