Q.3.1 Prepare the schedule of budgeted receipts from debtors for the period 1 January (18)

2020 to 31 March 2020. Round to two decimals.

Q.3.2

Pakhama Enterprises wants to extent its credit terms in order to increase the sales to grow the business. A consultant has, however, warned them that this can lead to overtrading.

Do some research on overtrading and prepare and email to management in which you explain what overtrading is as well as what the dangers of overtrading are. Remember to reference your answer and add your reference list to the bottom of this question.