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QUESTION 4 ( 2 0 Marks ) REQUIRED Prepare the following for April, May and June 2 0 2 5 : 4 . 1 Debtors

QUESTION 4
(20 Marks)
REQUIRED
Prepare the following for April, May and June 2025:
4.1 Debtors Collection Schedule
(6 marks)
4.2 Cash Budget.
(14 marks)
Note: The items that comprise General and administrative expenses must be shown separately.
INFORMATION
Bentall Limited is a retail outlet that is formulating its plans for the first half of 2025. The following information is available:
The figures below show the expected sales values of the products (excluding discounts):
\table[[2025,R],[January,900000],[February,945000],[March,990000],[April,1035000],[May,915000],[June,1020000]]
Seventy percent (70%) of the sales is for cash and the balance is on credit. Customers who purchase for cash are entitled to a discount of 10%. Forty percent (40%) of the credit sales is usually collected in the month of the sale and these debtors receive a 5% discount. The balance is collected in the month after the sale.
The products are sold at cost plus 50% and a fixed inventory level of R150000 is maintained at the end of each month. All purchases are on credit and creditors are paid three months after the purchase.
Labour costs are estimated to equal 10% of the current month's sales (excluding discounts). These are paid for in the applicable month.
General and administrative expenses are projected to be R792000 for 2025. Except for property taxes and directors' fees all other expenses are incurred evenly throughout the year. Property taxes are paid in four equal instalments in the last month of each quarter. Directors' fees are expected to increase by 10% with effect from 01 May 2025. General and administrative expenses comprise the following:
\table[[,R],[Directors' fees,144000],[Advertising,198000],[Property taxes,72000],[Insurance,108000],[Electricity and water,90000],[Depreciation,180000],[Total,792000]]
A company tax payment will be made on 01 April 2025 based on 50% of the estimated profit of R300000 for the financial year. The company's tax rate is 27%.
The closing bank balance on 31 March 2025 is expected to be R15000.j
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