Question 2 The information provided below relates to Prague Enterprises. 1. The bank balance on 31 May 2018 was R9 000 unfavourable 2. Actual and budgeted sales are as follows: (20 marks) MONTH May 2018 June 2018 AMOUNT R440 000 R400 000 R480 000 Cash sales are estimated at 10% of total sales. 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 month. 3. Actual and budgeted purchases for each month are as follows: MONTH May 2016 June 2016 July 2016 AMOUNT R240 000 R200 000 R220 000 Fifty percent (50%) of all purchases are for cash. Creditors are paid in full in the month following the purchase transaction. 4. Rent expense amounts to R19 000 per month, payable monthly. Rent will increase by 10% from 01 July 2016 5. Variable selling and administrative expenses are estimated at 25% of sales. They are payable during the month of sale 6. Insurance amounts to R72 000 per annum payable monthly Required 2.1 Prepare a Debtors collection schedule for June and July 2018 2.2 Prepare the Cash Budget for June and July 2018 (6 marks) (14 marks)