The following information relates to Nthona M Brands:

Total sales: May 2019 R150 000

June 2019 R164 000

July 2019 R189 000

August 2019 R195 000

30 of the sales are cash sales

Credit sales will be collected as follows

50% on the month of sale

30% on the second month o

15% on the third month o

5% written off

: May 2019 R82 000

June 2019 R95 000

July 2019 R104 000

August 2019 R123 000

40% of the purchases are cash purchases

Credit purchases will be paid as follows o

40% on the month of purchase

30% on the second month o

20% on the third month

Closing bank balance on May R23 500 (favorable)

Salaries for June will be R2 500 and increase by 10% on July 2019

Equipment of R65 000 will be bought on August 2019 Required:

1.1 Calculate the debtors schedule for June, July and August 2019 (8)

1.2 Calculate the purchases schedule for June, July and August 2019 (8)

1.3 Prepare cash budget for June, July and August 2019 (14)

1.4 Discuss the advantages of preparing a budget for organisations.