QUESTION THREE [30] The following information relates to Lusaka Enterprises. Information 1. The bank balance on 30 October 2018 was R24 000 (favourable). 2. Actual and budgeted sales are as follows:

	Actual		Budgeted
	September 2018	October 2018	November 2018	December 2018
Cash Sales	R130 000	R140 000	R130 000	?
Credit Sales	R150 000	R180 000	R170 000	R200 000

3. Credit sales are normally collected as follows:

50% one month after sale. 45% two months after the sale. The rest is usually written off as bad debts.

4. The cash sales for December are expected to be 20% greater than the cash sales for November. 5. Purchases are expected to be as follows:

	Actual	Budgeted
	October 2018	November 2018	December 2018
Cash purchases	R96 000	R104 000	R112 000
Credit purchases	R100 000	R110 000	R120 000

6. Creditors are paid one month after the month of purchase. 7. The monthly salaries amount to R50 000. Salaries are expected to increase by 9% with effect from 1 December 2018 8. Interest at 18% per annum on the loan balance of R100 000 is paid monthly. A repayment of R20 000 will be made on 31 December 2018.

9. Part of the building is sublet to a tenant. The lease agreement for the year ended 30 November 2018 reflected the rental amount of R2 000 per month. The rental will increase by 10% on 1 December 2018. 10. Other cash operating expenses amounted to R10 000 for October 2018. These expenses are expected to increase by R300 each month.

Required: 3.1 Prepare the debtors collection schedule for November and December 2018. (6) 3.2 Prepare the cash budget for November and December 2018. (24)