QUESTION $4(20$ Marks$)$

REQUIRED

Prepare the following for April, May and June $2025$:

$4\mathrm{.}1$ Debtors Collection Schedule $(6$ marks$)$

$4\mathrm{.}2$ 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:

$1.$ The figures below show the expected sales values of the products $($excluding discounts$)$:

$2025$ R

January $900000$

February $945000$

March $990000$

April $1035000$

May $915000$

June $1020000$

$2.$ 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.

$3.$ The products are sold at cost plus $50\%$ and a fixed inventory level of R$150000$ is maintained at

the end of each month. All purchases are on credit and creditors are paid three months after

the purchase.

$4.$ Labour costs are estimated to equal $10\%$ of the current month$$s sales $($excluding discounts$).$

These are paid for in the applicable month.

$5.$ General and administrative expenses are projected to be R$792000$ 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:

R

Directors$$ fees $144000$

Advertising $198000$

Property taxes $72000$

Insurance $108000$

Electricity and water $90000$

Depreciation $180000$

Total $792000$

$6.$ A company tax payment will be made on $01$ April $2025$ based on $50\%$ of the estimated profit of

R$300000$ for the financial year. The company$$s tax rate is $27\%.$

$7.$ The closing bank balance on $31$ March $2025$ is expected to be R$15000.$