QUESTION 4 (20 Marks) 4.1 4.2 REQUIRED Use the following information provided by Zenju Enterprises to prepare the following for August and September 2018: Debtors Collection Schedule (4 marks) Cash Budget (16 marks) Note: Use separate amount columns for each month. Where applicable, round off amounts to the nearest Rand. INFORMATION The bank balance on 31 July 2018 is expected to be R30 000 (CR) in the ledger of Zenju Enterprises. Expected credit sales are as follows: July 2018 August 2018 September 2018 R352 500 R360 000 R367 500 1. 2. 3. 4. 5. 6. Credit sales usually make up 75% of the total sales. Cash sales make up the balance. Credit sales are normally collected from debtors as follows: 40% in the month in which the transaction took place, and these debtors are entitled to a 5% discount; * 55% in the following month. The rest is usually written off as bad debts. Purchases of inventory each month are expected to equal to 50% of sales. Fifty percent (50%) of the purchases are for cash and the balance is paid in the month after the purchase. The monthly salaries amount to R108 000. Salaries are expected to increase by 7.5% with effect from 01 September 2018 Interest at 15% per annum on the loan balance is payable monthly. The loan balance on 31 July 2018 is forecast at R300 000 and a repayment of R12 000 (excluding interest) is made at the end of each month. Part of the building is sublet to a tenant and rent is receivable on the last day of each month. The lease agreement for the year ended 31 August 2018 reflected the rental as R120 000 per annum. The rental will increase to R134 400 for the period 01 September 2018 to 31 August 2019. Other operating expenses are expected to amount to R15 000 per month, including R2 000 per month for depreciation. Operating expenses are paid for in the month in which they are incurred. 7. 8. 9