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QUESTION 4 (20 Marks) The information provided below relates to Rooney Enterprises. Required 4.1 Prepare a debtors collection schedule for October and November 2018 (4 marks) 4.2 Prepare the Cash budget for October and November 2018. (16 marks) Note: Where applicable, round off all amounts to the nearest Rand. Information 1. The bank balance on 30 September 2018 was R5 000 (DR). 2. Actual and budgeted sales are as follows: R September 2018 220 000 October 2018 200 000 November 2018 240 000 3. Cash sales are estimated at 10% of total sales. 4. Debtors are expected to settle their accounts as follows: 70% during the month of sale (These debtors receive a 5% discount) 30% in the following the month . 5. Actual and budgeted purchases for each month are as follows: R September 2018 120 000 October 2018 100 000 November 2018 110 000 6. Fifty percent (50%) of all purchases are for cash. Creditors are paid in full in the month following the purchase transaction. 7. Rent expense amounts to R10 000 per month, payable monthly Rent will increase by 10% from 01 November 2019, 8. Variable selling and administrative expenses are estimated at 30% of sales. They are payable during the month of sale. 9. Insurance amounts to R24 000 per annum payable monthly 10. The proprietor intends to make the following drawings during November 2019 Cash R15 000 Trading merchandise, R3 000

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