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Yanxi is the owner manager of a bookshop called Take Away Books. The business is profitable, but Yanxi has organised a bank overdraft to help

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Yanxi is the owner manager of a bookshop called Take Away Books. The business is profitable, but Yanxi has organised a bank overdraft to help when there is a cash shortfall. She present the information at 31 December for use in the preparation of a cash budget for January and February. Sales: - 30% of sales are made on credit - 60% of debtors pay in the month after sales and receive 2% discount - 35% of debtors pay in the second month after sales - The remaining 5% is expected to become a bad debt Purchases: - All purchases are made on credit and are paid in the month of purchase so that the business receives a 5% discount. Other information: - The business pays $2000 rent per month - The business pays $300 for electricity every month - The wages expense is $3000 per month. $750 of January's expense will not be paid until February. There are no wages outstanding at the beginning of January and no wages will be outstanding at the end of February. - The delivery vehicle, which cost $65000, is depreciated at the rate of 10% per annum, using the diminishing-balance method. - $6000 for 6 months' registration and insurance for the delivery vehicle is paid in full in January. - Yanxi take $1000 a month in cash and $500 in stock for own use. - The bank overdraft at 31 December is $4000. - Interest on the bank overdraft is charged at 5% per month, payable in the following month. - Net profit for the year ended 31 December is $6000. Use the above information to prepare the following: a) Collection from Debtors for January and February. In case of zero collections, enter 0 in space provided Debtors Payment schedule Month of Sales Total Sales Credit Sales January February November 30000 b) Cash budget for Take Away Books for January and February. Do not enter negative values in brackets, instead use the '"' sign. In case of a zero prediction, enter 0 in space provided Cash budget for Take Away

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