QUESTION 4 (20 Marks)
Use the following information provided by Save Limited to:
4.1 Prepare a Debtors Collection Schedule for Jan and Feb 2020. (6 marks)
4.2 Prepare the Cash Budget for Jan and Feb 2020. (14 marks)
Note: Where applicable, round off all amounts to the nearest Rand.
INFORMATION
1. Save Limited expects to have a favourable bank balance of R55 000 on 31 December 2019.
2. sales figures for 2019 and 2020 are as follows:
	December 2019			Jan 2020		Feb 2020
	Actual (R)			Budgeted (R)
Total sales	390 000			280 000		290 000
3. 60% of sales are cash sales. 4. Debtors settle their accounts as follows: 60% in the month of the sale 35% one month after the sale 5% is written off as bad debts
5. Purchases of inventory for 2019 and 2020 are as follows:
		December 2019	January 2020		February 2020
Total purchases (R)		180 000	190 000		160 000
6. 50% of the purchases are for cash. The balance is purchased on credit. Creditors are paid one month after the month of purchase.
7. The proprietor will make the following drawings in January 2020: Trading stock R12 000 cash R16 000
8. Monthly salaries amount to R40 000. Salaries will increase by 10% with effect from 01 February 2020.
9. Equipment costing R150 000 will be purchased on 1 February 2020. A deposit of R30 000 will be paid on this date. The balance will be paid four equal monthly instalments commencing 31 March 2020. 10. Other cash operating expenses are expected to amount to R30 000 for January 2020 and are expected to increase by 10% from 1 February 2020.