QUESTION $5$

REQUIRED

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

$5\mathrm{.}1$

Debtors Collection Schedule

Cash Budget.

INFORMATION

The following information was provided by Miller Enterprises:

Budgeted sales $($excluding discounts$)$ are as follows:

Twenty percent $(20\%)$ of the cash sales is subject to a discount of $10\%.$

Credit sales are normally collected as follows:

$60\%$ in the month of the sale, and these customers are entitled to a $5\%$ discount.

$40\%$ in the month after the sale.

R$50000$ will be invested in a fixed deposit account on $31$ July $2024$ at an interest rate of $12\%$ per annum. Interest will be received monthly commencing August $2024.$

Purchases are expected to be as follows:

Creditors are paid in the month after the month of purchase.

Wages and salaries are expected to amount to R$143000$ for August $2024$ after a $10\%$ increase takes effect from $01$ August $2024.$

Loan repayments of R$10000$ are made at the end of each month. The balance in the loan account is expected to be R$300000$ on $01$July$2024.$ Interest at $12\%$ per annum is also

payable at the end of each month.

Rent income amounts to R$96000$ per year. Rent is received monthly.

Other cash expenses are budgeted at R$30000$ for June $2024.$ These expenses are expected to increase by $5\%$ each month.