ONE [30] 1. The following figures are available for Insure (Pty) Ltd: Actual (2020) Budget (2020) January February March April May Sales 96 000 120 000 60 000 160 000 200 000 Purchases 100 000 50 000 160 000 84 000 60 000 Sales commission 400 600 1 200 800 400 Wages 800 800 800 ? ? 2. 40% of all sales are for cash. 3. 35% of all purchases are for cash. 4. Collection from debtors are as follows: 20% is collected in the month of the sale and 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 a bad debt. 5. Insure (Pty) Ltd will make an investment of R50 000 in fixed deposit on 01 April 2020. 6. Interest of R500 per month on the fixed deposit is expected to be received from 30 April 2020. 7. Creditors are paid 2 months after date of invoice. 8. Rent expense amounts to R8 000 per month and is payable on the first day of each month. 9. Wages will be increased by 10% in April and will increase by a further 5% in May 2020. 10. A new machine is expected to be purchased for R10 000 cash in May 2020. 11. Commission is paid to sales personnel in the month following the month in which it was earned. 12. On 31 March 2020, Insure (Pty) Ltd had a bank overdraft of R28 000. Required: 1.1. Prepare the debtors collection schedule for April and May 2020. (10) 1.2. Prepare the cash budget for April and May 2020. (