Tel-one (Pty) Ltd supplies components for iPads. Information 1. The following figures are available: January R 192 000 Actual (2014) February R 240 000 Estimated (2014) April May R R 320 000 400 000 168 000 120 000 March R 120 000 320 000 Sales Purchases 200 000 100 000 800 1 200 2 400 1 600 800 Sales commission Wages 1 600 1 600 1 600 ? ? 2. Cash transactions: - 40% of all sales are for cash with the balance being on credit. -35% of all purchases are for cash with the balance being on credit 3. Collections for credit sales are as follows: - 20% is collected in the month of the sale and a 2% discount is granted on these colections. - 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 bad debts. 4. Tel-one (Pty) Ltd will make an investment of R150 000 in fixed deposit on 01 April 2014. Interest of R1 500 per month is expected to be received from 30 April 2014 5. Creditors are paid 2 months after the date of invoice 6. Rent expense amounts to R18 000 per month and is payable on the first day of each month. 7. Wages will be increased by 10% in April 2014 and will increase by a further 5% in May 2014. 8. A new machine is expected to be purchased for R40 000 cash on 1 May 2014. Depreciation is calculated using the straight line method. 9. Commission is paid to sales personnel in the month following the month in which it was earned. 10. On 31 March 2014 Tel-one (Pty) Ltd had a bank overdraft of R9 000. Required: Use the information provided to: 1.1 Prepare a debtors collection schedule for April and May 2014. 1.2 Prepare the Cash budget for April and May 2014 Note: Where applicable, round off all amounts to the nearest Rand. (6) (14)