QUESTION ONE [25] The information provided below relates to Tarla Investments: 1. The bank balance on 31 May was R56 000 favourable 2. Actual and budgeted sales are as follows: May R260 000 (Actual) June R280 000 (Budgeted) July R300 000 (Budgeted) Cash sales are expected to be 40% of total sales. Debtors are expected to settle their accounts as follows: - 70% during the month of sale, subject to a 5% discount. - 30% in the month following the sale. 3. Actual and budgeted purchases for the month are as follows: May R140 000 (Actual) June R160 000 (Budgeted) July R180 000 (Budgeted) 40% of all purchasers are for cash. Creditors are paid in full in the month following the purchase transaction. 4. Rent expense amounts to R15 000 per month, payable monthly. 5. Variable selling and administrative expenses are estimated at 25% of sales. They are able at the end of every month. 6. Insurance premium amounts to R72 000 per annum, payable monthly. Required: 1.1 Prepare the Debtors Collection Schedule for June and July. (6) 1.2 Prepare the Cash Budget for June and July. (19)