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REQUIRED Prepare the following for April, May and June 2 0 2 5 : 4 . 1 Debtors Collection Schedule ( 6 marks ) 4

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:
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 R150000 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 months sales (excluding discounts).
These are paid for in the applicable month.
5. 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:
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
R300000 for the financial year. The companys tax rate is 27%.
7. The closing bank balance on 31 March 2025 is expected to be R15000

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