REQUIRED Study the information provided below and prepare the following for July and August 2024. 3.1 Debtors Collection Schedule 3.2 Cash Budget INFORMATION (4 marks) (16 marks) Glenville Limited is in the process of developing a cash budget for July and August 2024. The following information is available: 1. Expected sales from May to August 2024 are as follows: May June July R750 000 R850 000 R1 500 000 R1 000 000 2. 3. August Historically 70% of the company's sales has been on cash and the rest on credit. Twenty percent (20%) of the cash sales is subject to a discount of 10%. Sixty percent (60%) of the credit sales is usually collected in the month after the sales, thirty five percent (35%) is collected two months after the sale and the balance is written off as bad debts. 4. 5. 6. 7. 8. 9. During August 2024 the company expects to receive a dividend of 8 cents per share on the 70 000 shares that it holds in Camry Limited. The company's purchases of inventory are estimated to be 60% of sales. Thirty percent (30%) is paid in cash and a discount of 10% is receivable. The balance is paid in the month after the purchase. (Separate entries are required for the cash purchases and payments for credit purchases.) The monthly rental, payable at the end of each month, will increase by 10% with effect from 01 August 2024. The rental payable on 31 August is R26 400. The fixed salary cost for 2024 is R420 000 and is paid evenly every month. Interest on loan for two months at a rate of 15% per year is payable on the loan balance of R150 000 during August 2024. New machinery with a cost price of R450 000 will be purchased and paid for during July 2024. 10. Other cash operating expenses are forecast at R200 000 for June 2024 and are expected to increase by 5% each month. 11. Cash in the bank on 30 June 2024 is expected to amount to R20 000.