Question 4 Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule (4 marks)

4.2 Cash Budget (16 marks)

INFORMATION The following information was provided by Intel Enterprises: 1. 2. 3. 4. 5. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable). Credit sales are expected to be as follows: December 2022 R576 000 January 2023 R540 000 Credit sales are normally collected as follows: Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. * 65% in the following month The rest is usually written off as bad debts. R1 000 000 * 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount. Budgeted purchases of inventory are as follows: December 2022 February 2023 January 2023 R648 000 R800 000 February 2023 R920 000 6. 7. 8. 9. 10. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase. The monthly salaries amount to R150 000. Salaries are expected to increase by 9% with effect from 01 February 2023 for those employees who presently make up 80% of the salary bill. The salaries of the remaining 20% are expected to increase by 6%. Interest at 18% per annum on the loan balance is paid at the end of each month. The loan balance on 31 December 2022 was R400 000 and a capital repayment of R100 000 will be made on 01 February 2023. Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the year ended 31 January 2023 reflected the rental as R180 000 per annum. The rental will increase by 10% with effect from 01 February 2023. Other operating expenses are budgeted at R40 000 per month. This amount includes R5 000 for depreciation. Operating expenses are paid for in the month in which they are incurred