QUESTION FOUR BUDGETS [20 MARKS] 4.1 42 (16) April REQUIRED Use the following information provided by Tatum Enterprises to: Prepare a Debtors Collection Schedule for March and April 2014 (4) Prepare the Cash Budget for March and April 2014 Note: Where applicable, round off all amounts to the nearest Rand. INFORMATION 1. Tatum Enterprises expects to have a favourable bank balance of R60 000 on 28 February 2014. 2. Budgeted sales figures for 2014 are as follows: January February March Cash sales R160 000 R185 000 R158 000 R124 000 Credil sales R188 000 R198 000 R162 000 R152 000 3 Debtors settle their accounts as follows: 80% in the month after the sale 20% two months after the sale 4 Purchases of inventory are expected to be as follows: January February March Total purchases R204 000 R230 000 R200 000 R190 000 5. 60% of the purchases are for cash. The balance is purchased on credit. Creditors are paid two months after the month of purchase. 6. The proprietor's cash monthly drawings amount to R10 000 7. The monthly salaries amount to R90 000. Salaries will increase by 8% with effect from 01 April 2014 8. A fixed deposit, R50 000, will mature (expire) on 31 March 2014. Interest at 12% per annum for 3 months will also be received 9. Equipment costing R80 000 will be purchased on 31 March 2014. A deposit of R20 000 will be paid on this date. The balance will be paid in 4 equal monthly instalments commencing 30 April 2014. 10. Other cash operating expenses are expected to amount to R80 000 for February 2014 and are expected to increase by 5% each month. April