QUESTION $1(25$ marks$)$ Using the relevant information provided in the case study, prepare the following for Established Manufacturers $($Pty$)$ Ltd: $1\mathrm{.}1$ A Debtors scheduled for November $2025,$ December $2025,$ and January $2026(5$ marks$)1\mathrm{.}2$ A Cash flow projection for November $2025,$ December $2025,$ and January $2026(20$ marks$)$

Statement of Financial

Position as of $30$ June

$2025$ Assets

Property, Plant, and

Equipment

Cash and Cash

Equivalents

Total Equity and

Liabilities

The Road Ahead

Looking forward to the next financial year, the management team identified

opportunities and challenges. Sales were evenly distributed over the past $12$ months

and are expected to grow by $5\%$ in the next financial year, while the cost of sales

remains constant at $65\%$ of total sales revenue.

Cost pressures are real in the current economy and the following have been identified:

Salaries and Wages were incurred evenly throughout the year. However, this is expected

to increase by $4\mathrm{.}25\%$ after the anticipated industry$-$wide union negotiations in October

Rent is paid quarterly, with the annual $10\%$ increase effective $1$ January $2026.$

Insurance premiums are paid monthly and increase by $8\%$ on $1$ July, each year.

Due to planned changes in Established Manufacturers' credit policy, the total value of

debtors is expected to double in the financial year. However, the $45-$day payment terms

granted to debtors will remain, despite the widely varying payment patterns.

$50\%$ of credit sales are collected within $30$ days.

$30\%$ are collected within $60$ days.

$5\%$ are written off as bad debts.

$15\%$ of sales are cash sales, with a $1\%$ discount offered.

Purchases are linked to sales, with monthly purchases equal to $50\%$ of monthly sales.

$65\%$ of purchases are made on credit, with $60-$day payment terms. The balance is paid

for in cash.

The total trade creditors at the end of the financial year are envisaged to increase by

R$4\mathrm{.}4$m YOY, while the opening inventory as of $1$ July $2026$ is expected to be R$1$m more

than $1$ July $2025.$

A new project will commence in January $2026,$ with a capital investment of R$1\mathrm{.}2$ million

to be made in a new truck. While a $12\%$ cash deposit is required $30$ days prior, the first

repayment for the truck will be on $1$ July $2026.$ Old equipment with a zero$-$book value

will be sold in October $2025$ for R$800,000,$ with payment terms of $30$ days after the sale.

The company maintains a depreciation policy of $10\%$ per annum on a straight$-$line

basis.

The short$-$term loan will be extinguished by October $2025,$ while the term loan with

Home Bank has an annual repayment of R$5$m due on $31$ March $2026.$

The total interest expense for FYE $2026$ is expected to rise by $6\%$

Based on the review and discussion, the CFO projected an unfavourable bank balance

of R$1837350$ at the end of October $2025.$ He also mentioned that given the loyalty and

support of the shareholders, it is anticipated a dividend of $65$ cents per share will be

declared and paid out in the