Answer Happy

Air flight Ltd has the following informations: On 30 April 2020 the bank account in the general ledger reflected a Credit balance of R30.000 Sales figures before taking any discounts in respect of cash or credit sales are: April R 120.000 78.000 63.000 90.000 75.000 48.000 60.000 40.000 50.000 68.000 58.000 Cash sales Credit sales Purchases Fixed costs Commission paid Wages Mav R 105.000 June R 94.500 46.500 80.000 100.000 60.000 54.000 The following discounts are given as incentives to customers: 5% on cash sales 10% on credit sales if accounts are settled after 30 days Collections from debtors are expected to be as follows: 30% 30 days after the sale 65% 60 days after the sale 5% 90 days after the sale 40% of the material purchased is bought on credit. Creditors are usually paid as follows: 75% within the same month of the purchase 25% 30 days after the purchase. Julv R 112.500 96.000 63.000 30.000 75.000 54.000 Pavment of fixed costs are paid 2 months later which include depreciation of R3.000 Commission are paid during the same months Wages are paid by 2 portions. 80% in the same month and the remainder in the next month Rent Income amounts to R10 000 per month, payable monthly. Rent will increase by 20% from 01 July 2020. The proprietor is expected to increase the capital contribution by R200 000 in June 2020. Insurance is paid R30 000 per annum. The company will take a loan of R100 000 from the bank on 01 May 2020 Interest is paid @ 15% on a monthly basis A new machine is expected to be purchased for R20 000 cash in July 2020 The company is expected to pay a tax bill of R10 000 in Jun 2020 The proprietor intends to make the following drawings during May 2020: Trading merchandise: R10 000 & Cash: R5,000 Required Prepare the debtors collection schedule for the period May 2020 to July 2020. Prepare the cash budget for the period May 2020 to July 2020.