REQUIRED Use the information provided below to prepare the following for January and February 2024: 3.1 Debtors Collection Schedule (4 marks) 3.2 Cash Budget (16 marks) INFORMATION The following information supplied by Orbit Enterprises: 1. Orbit Enterprises expects to have an unfavourable bank balance of R36 000 on 31 December 2023. 2. Expected sales are as follows:

3.Credit sales account for 60% of the total sales. The rest of the sales is for cash. 4. The amounts owed by debtors are usually collected as follows: 20% is collected in the same month as the credit sales for a 2% cash discount. 75% is collected in the month after the sale. 5% is written off as bad debts. 5. Forty percent (40%) of the purchases of inventory will be on credit. Creditors are paid two months after the purchase. The rest of the purchases will be for cash. A cash discount of 10% is expected to be received on 50% of the cash purchases. Purchases have been forecasted as follows.

6. The monthly salary expense of R100 000 is expected to increase by 7% from 01 February 2024. 7. Interest on loan for three months at an interest rate of 15% p.a. on the loan balance of R200 000 will be paid on 31 January 2024. 8. Advertising expenses are paid monthly and are estimated to be a fixed percentage of the total sales of the previous month. The advertising expense for December 2023 is expected to be R16 000. 9. The proprietors cash drawings are expected to amount to R24 000 per month. 10. Other cash operating expenses are expected to increase by 5% per month. Cash operating expenses for December 2023 are expected to amount to R40 000.

\begin{tabular}{|l|l|} \hline November 2023 & R400 000 \\ \hline December 2023 & R500 000 \\ \hline January 2024 & R440 000 \\ \hline February 2024 & R460 000 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline November 2023 & R380 000 \\ \hline December 2023 & R340 000 \\ \hline January 2024 & R300 000 \\ \hline February 2024 & R260 000 \\ \hline \end{tabular}