QUESTIONS 20 Marks) INFORMATION: The following information is available for Conlog Enterprises: 1. On 30 June 2020 the bank account in the general ledger reflected a credit balance of R125 000 2. The following related to sales for May and June 2020: May actual 60 June actual R60 Selling Price per unit Sales Volume 7000 units 8 200 units The selling price is expected to increase by 10% from 1 July due to the efects of COVID 19. Sales volume are expected to increase by 8% for each month from July onwards as the company atempts to reach full operation after the COVD lockdown. (Projected sales price per unit and sales volume must be rounded up to the nearest rand) 3.30% of sales are for cash 4. Collections from debtors are expected to be as follows: 40% - 30 days after the sale these customes quality for a 5% discount 50% -60 days after the sale 10% written off after 90 days 5. The producion records for finished goods reveal the following production costs and volumes: JUNE ACTUAL PER MONTH Cost Volume R20 Direct Material Direct Labour R10 Overheads R10 12 000 units Production volume is expected to increase by 5% for each month from July onwards as the company attempts to reach full production capacity after the COVID lockdown. Ignore opening and closing stock for cash budgeting purposes. 6. Al material purchases are on credit. Creditors are usually paid one month after purchase. Material costs are expected to increase by 10% from July onwards due to the deterioration in the exchange rate 7. Payment of overhead costs and seling and administrative costs are delayed by one month Overhead costs per unit are expected to remain the same for the projected period as the company attempts to minimise costs. Actual seling expenses for June was 8% of actual sales. Seling expenses for July to Sept are expected to increase to 10% of budgeted seles due to increased marketing efforis. 8. The company has been forced to lower the direct labour rate by 10% from 1 July due to the lockdown efects. Employees have agreed to this decrease as they understand tis essential to decrease costs in order to save jobs. Direct labour costs are paid in the month in which they are incumed 9. Actual salaries for June was R80 000. This was only 40% of the normal salary billes staff had been put an unpaid leave due to the lockdown. It is expected that all staff will return to work from 1 July 10. During July the company wil se two of is delivery vehicles as attempts to minimise some of its running cost. These vehicles together had an original cost of R225 000 and a book value of R80 000. They will both be sold for a total profit R40 000 10. A fixed deposit of R90 000 will mature on 31 July and will be redeemed. This investment was earning interest of 12% per annum which was being paid out moninly. 12. The proprietor is expected to increase his capital contribution by R30 000 on 1 July REQUIRED: 5.1 Compile the debtor's collection schedule for July and August 52 Compile: cash budget for July and August (4 marks) (15 marks)