QUESTION 1 [30 MARKS] On the 15th of December 2023, Four Roses Pty Ltd is planning its working capital management for January 2024. Beginning January 2024, the predicted financial information is as follows: Item Inventory Value (R) 4 550 000 Trade receivables 4 083 500 1 867 000 2 402 500 Trade payables Overdraft For 2024, the company expects to generate sales revenue worth R35 000 000 and sells all its products on credit. The following are the monthly sales figures for the remaining months of the year and January 2024: Month November 2023 (actual) December 2023 (predicted) January 2024 (predicted) Sales Value (R) 2 708 750 3 000 000 3 500 000 Four Roses Pty Ltd provides you with the following information as well: 40% profit margin policy. Offers 30 days credit and uses a 365-day year. 60% of its customers settle in the month after purchase. Remaining customers take an additional month of credit. Inventory is expected to increase by R522 500 during the month of January 2024. Plans to settle 70% of its trade payables in the month of January 2022 and the balance at the end of February 2024. All the company's suppliers require settlement within 30 days. Purchases on credit in the month of January 2024 are forecasted as R2 500 000. Interest on overdraft worth R700 000 is due in January 2024. The finance manager forecast that January's operating cash outflows to amount to R1 465 . 000. The finance manager informs you that Four Roses Pty Ltd has no cash and is depending on a bank overdraft. The overdraft is utilised to finance daily operations. As far as they are concerned, the company has no plans to raise long term funds in the month of January 2024.