QUESTION 4 REQUIRED Use the following information provided by Ruby Enterprises to prepare the: 4.1 Debtors Collection Schedule for January and February 2021. (4 marks) 4.2 Cash Budget for January and February 2021. (16 marks) Note: Where applicable, round off amounts to the nearest Rand. INFORMATION 1. Ruby Enterprises expects to have an unfavourable bank balance of R30 000 on 01 January 2021. 2. Credit sales are expected to be as follows: November 2020 December 2020 January 2021 February 2021 R270 000 R600 000 R276 000 R288 000 * 3. Credit sales usually make up 60% of the total sales. Cash sales make up the balance. 4. Credit sales are normally collected as follows: 30% in the month in which the transaction took place, and these customers are entitled to a discount of 2%; * 65% in the following month. The rest is usually written off as bad debts. 5. Budgeted purchases of inventory are as follows: December 2020 January 2021 R350 000 R280 000 February 2021 R330 000 6. 60% of the purchases of inventory are for cash in order to take advantage of a 10% discount. The remainder is paid one month after the purchase. 7 Salaries for February 2021 are expected to amount to R117 600, 12% more than the salaries for January 2021 8. Interest at 12% per annum on the loan balance is paid monthly. The loan balance as at 31 December 2020 is expected to be R300 000 and a repayment of R40 000 will be made on 01 February 2021. 9. Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the year ended 31 January 2021 reflected the rental as R132 000 per annum. The rental will increase by 10% with effect from 01 February 2021. 10. Other operating expenses amount to R35 000 per month. This amount excludes R5 000 per month for depreciation. Operating expenses are paid for in the month in which they are incurred. 11. A decision was made to invest by purchasing 25 000 shares at R4 each in Venus Limited during February 2021