REQUIRED
Use the information provided below to preparethe 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:
	November 2023	R400 000
	December 2023	R500 000
	January 2024	R440 000
	February 2024	R460 000
3.	Credit sales account for 60% of the total sales. The rest of the sales is for cash.
4.	The amountsowed by debtorsare usually collected as follows:
20% is collected in the same month as the creditsales for a 2% cash discount. 75% is collected in the monthafter the sale.5% is writtenoff 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:
	November 2023	R380 000
	December 2023	R340 000
	January 2024	R300 000
	February 2024	R260 000
6.	The monthlysalary expense of R100 000 is expected to increase by 7% from 01 February2024.
7.	Interest on loan for three monthsat an interest rate of 15% p.a. on the loan balanceof R200 000 will be paid on 31 January 2024.
8.	Advertising expensesare paid monthlyand are estimated to be a fixed percentage of the total sales of the previous month.The advertising expensefor 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 expensesare expected to increase by 5% per month. Cash operating expenses for December 2023 are expected to amount to R40 000.