QUESTION FOUR $[40]$ You are provided with information relating to Bala$$s Enterprises for the two months ending $31$ January $2023.$ Mrs Shomo owns the business. The business has overdraft bank facilities of R$70000.31.$ Sales and Cost of Sales Actual Sales Budgeted Sales Cost of Sales October $202214000085000$ November $2022160000100000$ December $2022180000125000$ January $20232200001650002.20\%$ of the total sales are on credit. $3.$ Debtors are expected to pay their accounts as follows: $-70\%$ in the month following the month of the sale. $-28\%$ two months following the month of the sale. $-2\%$ is to be written off in the third month following the month of the sale. $4.$ A fixed level of trading stock on hand is maintained throughout the year through replacement monthly. $5.$ Purchases of stock: $-65\%$ of all stock is bought on credit. $-$ Creditors are paid in full in the month following the month of purchase to qualify for a $5\%$ discount. $6.$ It has been agreed that the owner Mrs$.$ Shomo, will take unused equipment at book value in January for her own use, worth R$2000.$ This has not been recorded as yet. $7.$ R$150000$ was invested in fixed deposits with Tar Bank on $1$ November $2022.$ Interest is received monthly at $12\%$ per annum; half of these fixed deposits matures on $31$ December $2022.$ The rest matures in February $2023.8.$ Rent of R$12000$ is payable to Shaky$-$Shaky Providers at the start of each month. This will be increased by $10\%$ with effect from $1$ January $2023.9.$ Total salaries for November $2022$ amounts to R$22000.$ One employee, who earns R$2500$ per month, will leave the business at the end of November $2022.$ The salaries of the remaining employees will be increased by $10\%$ with effect from $1$ January $2023.10.$ A vehicle with a carrying value of R$65500$ will be traded in at book value on $1$ December $2022$ for a new vehicle costing R$175000.$ A deposit of R$4500$ will be paid on $1$ December $2022$ and the balance of the outstanding amount will be paid in six equal instalments commencing $1$ January $2023.11.$ The bookkeeper is paid a monthly fee of R$2500$ however, in January $2023$ the fee is reduced by $40\%.12.$ Other operating expenses were R$8500$ for November. These expenses are expected to increase by $10\%$ in December $2022$ and by R$650$ in January $2023.413.$ The business has an overdraft of R$21000$ at the beginning of December $2022.$ Interest is calculated by the bank on the balances at the beginning of each month. Provide for interest at the following rates $($calculations to the nearest R$.)$: $-$ Unfavourable balance: $2\%$ per month. $-$ Favourable balance: $1\%$ per month. Required: $4\mathrm{.}1$ Debtors Collection Schedule for the period $1$ December $2022$ to $31$ January $2023.(10)4\mathrm{.}2$ Cash budget for the period $1$ December $2022$ to $31$ January $2023.(25)4\mathrm{.}3$ Explain why budgeting is important and comment on the opening and closing balances for Bala$$s enterprises.