Use the information provided by Megafone Enterprises to prepare the following for January and February 2023:

4.2 Cash Budget

INFORMATION

The following information was made available by Megafone Enterprises to assist in its cash planning for 2023:

1. A bank overdraft of R50 000 is expected on 31 December 2022.

2. Credit sales are expected to be as follows:

November 2022 - R252 000

December 2022 - R288 000

January 2023 - R270 000

February 2023 - R324 000

3. Credit sales usually make up 30% of the total sales. Cash sales make up the balance.

4.1 30% in the month in which the transaction takes place, and these debtors are entitled to a 5% discount.

4.2 65% in the month after the sale. The rest is usually written off as bad debts.

5. Budgeted purchases of inventory are as follows:

December 2022 - 668 000

January 2023 - 536 000

February 2023 -620 000

6. Sixty (60%) percent of the purchases of inventory is for cash. The remainder is paid in the month after the purchase.

7. The monthly salaries are expected to amount to R118 800 for February 2023, after an 8% increase takes effect from 01 February 2023.

8. Interest at 12% per annum on the loan balance is payable at the end of each month. The loan balance on 01 January 2023 is expected to be R250 000 and capital repayments of R25 000 are made at the end of each month.

9. Part of the building is sublet to a tenant and rent is collected monthly. The lease agreement for the year ended 31 January 2023 reflected the rental as R240 000 per annum. The rental will increase by R24000 per annum with effect from 01 February 2023.

10.Other operating expenses amount to R48 000 per month, including R8 000 for depreciation. Operating expenses are paid for in the month in which they are incurred.