Use the information provided below to prepare the following for Mustang Enterprises for January and February

$2024.$

$3\mathrm{.}1$ Debtors Collection Schedule $(4$ marks$)$

$3\mathrm{.}2$ Cash Budget. $(16$ marks$)$

INFORMATION

The following information was supplied by Mustang Enterprises:

$1.$ Mustang Enterprises expects to have an unfavourable bank balance of R$40000$ on $31$ December $2023.$

$2.$ The monthly sales were projected as follows:

$2023$ Units

November $44000$

December $53000$

$2024$ Units

January $47000$

February $31000$

$3.$ The selling price is R$20$ per unit $($excluding any discounts$).$ All the goods produced each month are

expected to be sold in the same month. Sixty percent $(60\%)$ of the sales is expected to be on credit and

the balance is for cash. Thirty percent $(30\%)$ of the cash sales is subject to a discount of $10\%.$

$4.$ Credit sales are usually collected as follows:

$20\%$ in the month of sale, and these debtors receive a $5\%$ discount.

$75\%$ in the month after the sale, and the rest is usually written off as bad debts.

$5.$ Manufacturing overheads are paid monthly. The overheads are expected to amount to R$65000$ for

December $2023,$ including R$5000$ for depreciation. Manufacturing overheads are expected to increase

by $5\%$ each month.

$6.$ Labour costs amount to R$6$ per unit and are paid in the month in which they are incurred. Labour costs

per unit are expected to increase by $9\%$ with effect from $01$ February $2024.$

$7.$ Materials cost R$7$ per unit $($excluding any discounts$).$ All the materials are purchased for cash to take

advantage of a discount of $7\mathrm{.}5\%.$

$8.$ R$200000$ is expected to be invested in a fixed deposit account on $01$ February $2024.$ Interest at $9\%$

per annum is receivable monthly, commencing February $2024.$

$9.$ Selling and administrative costs are paid monthly and are expected to total R$56000$ for February $2024,$

after an increase of $12\%$ takes place on $01$ February $2024.$