Reference no: EM133273043

Quinton Limited had sales of R100 000 in January, R80 000 in February, and R90 000 in March.

The company forecasts sales for the coming months as follows:

April R110 000

May R100 000

June R120 000

Additional information:

The company had a cash balance of R20 000 on 1 April. 40% of the company's sales is cash. Account receivables (credit sales) are collected as follows:

20% during the month of sale

50% during the first month following the sale

20% during the second month following the month of sale

10% during the third month following the month of sale

The company anticipates other cash income as follows:

April R10 000

May R12 000

June R11 000

50% of credit purchases are paid in the month of purchase and the balance is paid the following month. Rent paid amounts to R5 000 per month. Salaries and wages amount to R20 000 per month. Interest payment of R5 000 is due in May. Equipment valued at R7 500 will be purchased in cash in April. A trading fine of R10 000 is payable in June.

1. Prepare the debtors' collection schedule

2. Prepare the credit purchase schedule.

3. Prepare the cash budget for Quinton for the months of April, May, and June.