Question 3 The information provided below relates to Toby Enterprises. 1. The bank account on 30 September 2016 was a favourable balance of R11 000. 2. Actual and budgeted sales are as follows: September 2016 220 000 October 2016 200 000 November 2016 240 000 Cash sales are estimated at 10% of total sales. Debtors are expected to settle their accounts as follows: - 70% during the month of sale (These debtors receive a 5% discount) - 30% In the folowing month. 3. Actual and budgeted purchases for each month are as follows: September 2016 120 000 October 2016 100 000 November 2016 110 000 Fifty percent (50%) of all purchases are for cash. Creditors are paid in full in the month following the purchase transaction 4. Rent expense amounts to R9 000 per month payable monthly Rent will increase by 10% from 01 November 2016. 5. Selling and administrative expenses are estimated at 25% of sales. They are payable during the month of sale. 6. Insurance amounts to R30 000 per annum payable monthly. 7. The proprietor intends to make the following drawings during November 2016: - Cash R8 000 - Trading merchandise, R5 500. Required 3.1 Prepare a Debtors collection schedule for October and November 2016 (6) 3.2 Prepare the Cash budget for October and November 2016 (14)