Use the information provided below to prepare the following for August and September $2024$:

$4\mathrm{.}1$ Debtors Collection Schedule $(4$ marks$)$

$4\mathrm{.}2$ Cash Budget $(16$ marks$)$

Note: Where applicable, express amounts to the nearest Rand.

INFORMATION

Breazies Limited provided the following information to assist in the preparation of the debtors collection

schedule and cash budget for August and September $2024$:

$1.$ The bank balance on $31$ July $2024$ is expected to be R$90000($favourable$).$

$2.$ Forty percent $(40\%)$ of the sales is expected to be for cash; the balance is on credit. Credit sales for

June and July $2024$ are expected to be R$600000$ and R$660000$ respectively. Cash sales and credit

sales are expected to increase by $10\%$ each month. Thirty percent $(30\%)$ of the credit sales is expected

to be settled during the month of the sale for a discount of $5\%.$ The remaining customers usually pay

in the month after the sale.

$3.$ Sixty percent $(60\%)$ of the purchases of inventory is for cash and the balance is paid in the month after

the purchase. $($Two separate entries are required.$)$ Twenty percent $(20\%)$ of the cash purchases is

subject to a discount of $10\%.$ Purchases are expected to be as follows:

July R$800000$

August R$900000$

September R$1000000$

$4.$ Salaries and wages are expected to cost R$172800$ for September $2024,$ after an increase of $8\%$ takes

effect on $01$ September $2024.$

$5.$ Advertising expenses are expected to be $5\%$ of the total monthly sales $($excluding discounts$)$ and are

paid one month later.

$6.$ Equipment with a cost price of R$600000$ is expected to be purchased during August $2024.$ A deposit

of $20\%$ will be paid in August and the balance is payable in five equal monthly instalments commencing

September $2024.$

$7.$ A long$-$term loan of R$400000$ at $12\%$ per annum interest is to be raised on $01$ August $2024.$ Interest

on loan as well as a repayment amount of R$20000$ is payable at the end of each month.

$8.$ Other cash expenses are expected to amount to R$100000$ for July $2014.$ These expenses are expected

to increase by $5\%$ each month.

$9.$ An interim dividend of $12$ cents per share is expected to be paid on $31$ August $2024.$ The authorised

share capital of Breazies Limited consists of $600000$ shares of which $400000$ have been issued.