REQUIRED Use the information provided below to prepare the following for March and April 2024: 3.1 Debtors Collection Schedule (4 marks) 3.2 Cash Budget (16 marks) INFORMATION The following information was provided by Supra Enterprises: 1. The following are estimates for the first four months of 2024 : 2. Sixty percent \(60 of the sales is for cash and the balance is on credit. Collections from credit sales are as follows: \20 is collected during the month of the sale; \75 is collected in the month after the sale. The remaining \5 is written off as bad debts. 3. Seventy percent \(70 of the purchases is on credit. The balance is for cash. Creditors are paid two months after the month of purchase. 4. Supra Enterprises will make an investment of R150 000 in fixed deposit on 01 March 2024. Interest at a rate of \12 per annum is expected to be received monthly from March 2024. 5. Rent expense amounts to R432000 per year and is payable monthly. 6. Wages will be increased by \8 on 01 March 2024 . after QUESTION 5. REQUIRED Use the information provided below to answer the following questions: 5.1 If a payback period of less than three years is desired, would the project be acceptable? Motivate your answer by doing the relevant calculations (answer expressed in years, months and days). (4 marks) 5.2 Calculate the Accounting Rate of Return on average investment (expressed to two decimal places). (4 marks) 5.3 Calculate the Net Present Value. (4 marks) 5.4 Calculate the Internal Rate of Return (IRR) of the project, if the net cash flows are R120 000 per year for each of the five years instead of the values stated below. Your answer must include the calculation of two net present values as well as the determination of the IRR expressed to two decimal places. (6 marks) 5.5 Would you recommend the payback period as a technique in capital budgeting and investment appraisal? Motivate your answer. (2 marks) INFORMATION The following information relates to a capital investment project that is being considered by Harriot Limited: The company estimates that its cost of capital is \12. No scrap value is expected. QUESTION 4 (20 Marks) 4.1 REQUIRED Use the following information to calculate the cash conversion cycle of Bosonic Ltd at the end of its first year of operations. (Use 360 days in your calculations.) (7 marks) INFORMATION Bosonic Ltd commenced business on 02 January 2022 and at the end of the first year of operations it had sales of R 1656000 , cost of sales of R1 188000 and an inventory turnover of 36 times. R180 000 was owed to Bosonic Ltd for credit sales and R50 400 was owed for credit purchases on 31 December 2022. All the sales were on credit and the credit purchases amounted to R594 000. INFORMATION The following is an extract from the accounting records of Malvern Traders on 28 February 2023 after necessary year-end adjustments were made: Additional information that must be considered: - According to the Statement of Comprehensive Income the net profit for the year ended 28 February 2023 amounted to R1 080000 . ADDITIONAL INFORMATION AND ADJUSTMENTS 1. Stationery used during the financial year ended 28 February 2023 amounted to R47 500. 2. Advertising includes a payment of \\( \\mathrm{R} 6000 \\) for advertisements of the same cost that will be published each month from December 2022 to November 2023. 3. Rent income amounts to R 10000 per month for the financial year ended 28 February 2023. Make the necessary adjustment. 4. Write off the account of debtor, P. Paul, who owed R1 500. 5. The provision for bad debts must be increased to R17 500 . 6. Directors' fees owed on 28 February 2023 amounted to R20 000, 7. The loan from Ria Bank was obtained on 01 February 2023. Provide for the outstanding interest on loan. 8. A notice from the municipality indicated that the rates for the year ended 28 February 2023 has been adjusted to \\( \\mathrm{R} 80000 \\). 9. Provide for depreciation as follows: 9.1 On equipment at \10 per year on cost. 9.2 On vehicles at \20 per year using the reducing balance method. 10. Company tax owed to South African Revenue Services for the year ended 28 February 2023 amounted to R24 070. Note: - All the sales were on credit. - Company tax is calculated at \30 of the pre-tax profit. - Current assets include accounts receivable of R1 680000 and inventories of R750 000 . - The issued share capital of the company consisted of 100000 ordinary shares