QUESTION $1$

$(4$ Marks; $5$ minutes$)$

Please answer the following two questions by listing the question numbers below one another, from

$1\mathrm{.}1-1\mathrm{.}2,$ with your corresponding answer next to each number, for example:

$1\mathrm{.}1.($a$)$

$1\mathrm{.}2.($b$)$

The questions$/$scenarios are as follows:

The management accountant of Bothners $($Pty$)$ Ltd$,$ a musical instruments store, requested your

assistance with some of the calculations required for the three$-$month cash forecast. You were

provided with the following extract from the company's forecast trial balance for the three months

ending ${31}^{st}$ December $2024$ :

Additional Information

It is budgeted that $80\%$ of the sales$/$ revenue will be on credit for the entire forecast period. The

budgeted receipt from customers who buy on credit is $50\%$ at the end of the month the sale is made;

$30\%$ will be received at the end of month two; and $15\%$ will be received at the end of month three.

The remaining $5\%$ is expected to be written off as bad debt.

$1\mathrm{.}1.$ The total amount to be received from credit sales at the end of December $2024$ is$.$

$?$

$($a$)$ R$4800000$

$($b$)$ R$5500000$

$($c$)$ R$6600000$

$($d$)$ R$4320000$

$1\mathrm{.}2.$ The amount of Net working capital at the end of November $2024$ is

$?$

$($a$)$ R$1380000$

$($b$)$ R$2080000$

$($c$)$ R$5980000$

$($d$)$ R$1600000$