3.1 REQUIRED Use the information provided below to calculate the profit to Zengu Traders if: 3.1.1 all the sales are for cash; (2 marks) 3.1.2 all the sales are on credit and the accounts are paid in 90 days; (4 marks) 3.1.3 all the sales are on credit (payable within 90 days) but a 5% discount is granted if the account is paid within 10 days. Suppose this discount applies to 70% of the credit sales. (6 marks) INFORMATION The budgeted sales of Zengu Traders for Product Zap is 30 000 units at a price of R30 per unit. The manufacturing cost of the product is R12 per unit. If the sales are made on credit, collection costs of approximately 10% of sales will be incurred. The cost of capital to Zengu Traders is 15%. 3.2 REQUIRED Answer the following questions from the information provided below: 3.2.1 Do you think that the credit department of Bellagio Traders is effective in debt collection? Motivate your answer with use of a relevant ratio. (4 marks) 3.2.2 Bellagio Traders experienced a bad debt ratio of about 5% on average over the past few years. Calculate and comment on the bad debt ratio for 2020. (4 marks) INFORMATION The annual sales of Bellagio Traders for 2020 were R1 250 000, of which 60% was on credit. An amount of R90 000 was owed by debtors on 31 December 2020 and debtors accounts written off during 2020 totalled R30 000. Credit terms to debtors are 30 days. 3.3 REQUIRED Study the following ageing schedule and comment on the collection of debtors by MS Suppliers. (5 marks) INFORMATION The following ageing schedule was provided by MS Suppliers for March 2021. The credit terms to debtors are 30 days. Debtor Credit limit Balance Current 30 days 60 days 90 days + W. White R50 000 R54 000 R20 000 R18 000 R16 000 T. Nkosi R60 000 R40 000 R40 000 S. Singh R2 600 R2 990 R2 990 G. Coetzee R24 000 R10 000 R12 000 R2 000