QUESTION TWO The management of Pelican Medical Supplies approach you to prepare a Cash Budget for November and December. The following information is available: Sales: Cash Credit Purchases Salaries & Wages Sundry Expenses August Additional information: R 194 500 287 300 510 000 72 600 17 800 Actual September October R 235 700 350 000 490 000 72 600 18 400 2. The following discounts are allowed on sales: 1. Cash in respect of credit sales is collected as follows: 50% within 30 days 30% within 60 days 15% within 90 days The balance is written off as irrecoverable. R 275 000 410 000 495 000 72 600 22 000 November R 7. The cash in the bank on 31 October was R44 500. Budgeted 250 500 400 400 520 000 72 600 10% on cash sales 7.5% on credit sales if accounts are settled within 30 days. 22 600 December R 368 000 697 000 3. All salaries, wages and sundry expenses are paid in cash. 4. Sundry expenses include depreciation of R4 200 per month. 5. Seventy-five (75%) of all purchases are on credit and paid within 30 days. The balance is paid in cash. 6. A year-end bonus to employees totaling R20 000 will be paid in December. 680 000 72 600 [25] 25 700 Required: Prepare the Cash Budget for November and December using separate monetary col for each month.