MAC1501/102 QUESTION 2 (16 marks) Moferefere Company is a merchandising company that sells a single product. The company's inventories, purchases and sales in units for the next three months have been forecasted as follows: Beginning inventory Merchandise purchases Sales Closing inventory Additional information: All sales are one credit. October 10 000 November 10 000 December 10 000 60 000 70 000 80 000 60 000 70 000 40 000 10 000 10 000 50 000 Each unit is sold for R20. One fourth (14) of all sales are paid in the month of sale and the balance is paid in the month following the month sale. Sales for the month of September amounted to R750 000. Merchandise is purchased for R10 per unit. Half of the purchases are paid in the month of purchase and the remainder is paid in the month following the month of purchase. Selling and administrative expenses are expected to amount to R240 000 per month. Merchandise purchased in September amounted to R300 000. Taxation payable in October amounts to R180 000. Bank balance on 30 September was R80 000. A payment of equipment purchased at the beginning of October for R250 000 is scheduled for November and a dividend of R200 000 is expected to be paid in December. Required: 2.1 Prepare a schedule of collections from customers for the months of October and November. (6) 2.2 Prepare a cash budget for the months of October and November. QUESTION 3 (15 Marks) (10) [16] Simakade Company has provided you with the following selected financial data for the years ended 31 December 2020 and 2021: 2021 2020 Revenue from sales Cost of sales 1 500 000 2 000 000 900 000 1 000 000 Trade receivables 700 000 800 000 Distribution costs 300 000 350 000 Non-current liabilities 1 000 000 950 000 Trade payables 600 000 700 000 Inventories 600 000 400 000 Short-term borrowings 240 000 220 000 Cash and cash equivalents 200 000 300 000 7