(20) QUESTION 5 Xavi Limited supplies components for TV sets. Required Use the information provided below to: 5.1 Prepare a Debtors collection schedule for June and July 2020. 5.2 Prepare the Cash budget for June and July 2020. Note: Where applicable, round off all amounts to the nearest Rand. (6) (14) Information 1. The following figures are available: Sales Purchases Sales commission Wages March R 96 000 100 000 400 800 Actual (2020) April R 120 000 50 000 600 800 May R 60 000 160 000 1 200 800 Estimated (2020) June July R R 160 000 200 000 84 000 60 000 800 400 ? ? 40% of all sales are for cash. 35% of all purchases are for cash. Collections for credit sales are as follows: 20% is collected in the month of the sale and a 2% discount is granted on these collections. 60% is collected in the month following the month of sale. 15% is collected in the second month following the month of sale. The remaining 5% is written off as bad debts. 2. Xavi Limited will make an investment of R50 000 in fixed deposit on 01 June 2020. Interest of R500 per month is expected to be received from 30 June 2020. 3. Creditors are paid 2 months after the date of invoice. 4. Rent expense amounts to R8 000 per month and is payable on the first day of each month. 5. Wages will be increased by 10% in June 2020 and will increase by a further 5% in July 2020. 35 PROGRAMME HANDBOOK: JANUARY 2020 INTAKE- REVISED SEMESTER 2 MANCOSA: BACHELOR OF BUSINESS ADMINISTRATION HONOURS 36 6. A new machine is expected to be purchased for R10 000 cash in July 2020. 7. Commission is paid to sales personnel in the month following the month in which it was earned. 8. On 31 May 2020 Xavi Limited had a bank overdraft of R28 000