QUESTION $3(25$ MARKS$)$ King Limited is in the process of formulating plans for the first quarter of $2024.$ REQUIRED Use the information provided below to prepare the following for King Limited for January, February and March $2024($use separate amount columns for each month$)$: $3\mathrm{.}1.$ Debtors Collection Schedule $(6$ Marks$)3\mathrm{.}2.$ Cash Budget $(14$ Marks$)3\mathrm{.}3.$ Discuss the negative impact that can result for King Limited if the cash budget is not done accurately $(5$ Marks$)$ INFORMATION $1.$ The following sales figures are forecast: Year Month Sales $($ R$)2023$ December $3200002024$ January $2700002024$ February $2000002024$ March $3000002.$ Forty percent $(40\%)$ of the sales are expected to be for cash and the balance is on credit. $3.$ Twenty percent $(20\%)$ of the credit sales is expected to be collected in the month of the sale and eighty percent $(80\%)$ in the month after the sale. $4.$ The purchase of inventory is the company$$s largest expenditure and the cost of these items equals $60\%$ of the current month$$s sales. All purchases are for cash in order to take advantage of $10\%$ discount. $5.$ Wages and salaries equal $20\%$ of the current month$$s sales. Labour costs are paid for in the month in which they are incurred. $6.$ Property taxes are estimated to be R$36000$ for $2024$ and will be paid in four equal instalments in the last month of each quarter. $7.$ General and administrative expenses are projected to be R$240000$ for $2024$ and are payable monthly. These expenses are incurred evenly throughout the year. $8.$ Selling and distribution expenses amount to R$10000$ for January $2024$ and are expected to increase by $10\%$ per month thereafter. These expenses are paid for in the month that they are incurred. $9.$ Income tax payments are made by the company in the first and seventh month of the calendar year based on the profit before tax for the previous six months. The company$$s income tax rate is $30\%.$ The company$$s profit before taxes for the last six months of $2023$ is projected to be R$25000010.$ The expected cash balance on $31$ December $2023$ is R$50000.$