Mr Erasmus has indicated that the proposal will only be implemented if the forecasted net profit before tax percentage exceeds the industry average of 15% REQUIRED: QUESTION 3 (Marks: 15) You received the following financial statement from Bok Traders who manufacture replica rugby jerseys. The managing director, Mr Erasmus, has asked for your assistance to determine whether the marketing manager's proposal is a viable option in helping to boost the company's revenue. In the current financial year 40 000 jerseys were sold, which was 60 000 jerseys less than what was sold previously Prepare a budgeted statement of comprehensive income using the information above to determine whether the marketing manager's proposal should be implemented. QUESTION 4 4 Marks:25) The following are the total sales of Top Class Ltd for the past three months of 2021 Month April May Total Sales R900 000 R700 000 June R500 000 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021 DETAILS Sales Cost of Sales Gross Profit Other operating income Grer Gross operating income Operating expenses Operating profit Interest income Profit before interest expense Interest expense Profit before tax R 8 800 000 (4 500 000) 4 300 000 1 200 000 5 500 000 A noi (3 400 000) 2 100 000 195 000 2 295 000 (475 000) ) 1 820 000 1 The budgeted sales figures for the next three months are expected as follows Month July August Total Sales R825 000 R760 000 September R920 000 Additional information The marketing team, through their research, has indicated that if the selling price was reduced by 25%, then unit sales would increase by 60% for the next financial year, Together with the marketing department's research, the financial manager has provided you with the following forecasted information for the year ending 31 March 2022. . 1) 40% of all sales are made in cash. 2) Credit sales for October 2021 are expected to be R450 000. 3) Debtors are collected as follows. 15% of outstanding amounts are collected during the month following the month of sale (i.e: 30 days). A discount of 4,5% is offered for early settlement of accounts. 60% is collected in the subsequent month (i.e.: 60 days). 20% is collected in the subsequent month (ie.: 90 days). The balance is irrecoverable and needs to be written off. . . . . . . Through negotiation with suppliers and the improved exchange rate, the costs to manufacture each jersey are expected to decrease by 10%. Other operating income is expected to increase by 5%. Operating expenses are expected to increase by 12%. Due to the decline in interest rates, interest income is expected to be three quarters of the amount earned for the year ending 31 March 2021 whilst the interest expense is expected to decline by R 50 000. REQUIRED: Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021 to 31 October 2021. Show all workings Round to the nearest Rand. . Mr Erasmus has indicated that the proposal will only be implemented if the forecasted net profit before tax percentage exceeds the industry average of 15% REQUIRED: QUESTION 3 (Marks: 15) You received the following financial statement from Bok Traders who manufacture replica rugby jerseys. The managing director, Mr Erasmus, has asked for your assistance to determine whether the marketing manager's proposal is a viable option in helping to boost the company's revenue. In the current financial year 40 000 jerseys were sold, which was 60 000 jerseys less than what was sold previously Prepare a budgeted statement of comprehensive income using the information above to determine whether the marketing manager's proposal should be implemented. QUESTION 4 4 Marks:25) The following are the total sales of Top Class Ltd for the past three months of 2021 Month April May Total Sales R900 000 R700 000 June R500 000 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021 DETAILS Sales Cost of Sales Gross Profit Other operating income Grer Gross operating income Operating expenses Operating profit Interest income Profit before interest expense Interest expense Profit before tax R 8 800 000 (4 500 000) 4 300 000 1 200 000 5 500 000 A noi (3 400 000) 2 100 000 195 000 2 295 000 (475 000) ) 1 820 000 1 The budgeted sales figures for the next three months are expected as follows Month July August Total Sales R825 000 R760 000 September R920 000 Additional information The marketing team, through their research, has indicated that if the selling price was reduced by 25%, then unit sales would increase by 60% for the next financial year, Together with the marketing department's research, the financial manager has provided you with the following forecasted information for the year ending 31 March 2022. . 1) 40% of all sales are made in cash. 2) Credit sales for October 2021 are expected to be R450 000. 3) Debtors are collected as follows. 15% of outstanding amounts are collected during the month following the month of sale (i.e: 30 days). A discount of 4,5% is offered for early settlement of accounts. 60% is collected in the subsequent month (i.e.: 60 days). 20% is collected in the subsequent month (ie.: 90 days). The balance is irrecoverable and needs to be written off. . . . . . . Through negotiation with suppliers and the improved exchange rate, the costs to manufacture each jersey are expected to decrease by 10%. Other operating income is expected to increase by 5%. Operating expenses are expected to increase by 12%. Due to the decline in interest rates, interest income is expected to be three quarters of the amount earned for the year ending 31 March 2021 whilst the interest expense is expected to decline by R 50 000. REQUIRED: Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021 to 31 October 2021. Show all workings Round to the nearest Rand