QUESTION $4$

$(20$ Marks$)$

REQUIRED

Prepare the following for April, May and June $2025$:

$4\mathrm{.}1$ Debtors Collection Schedule

$4\mathrm{.}2$ Cash Budget.

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 haf of $2025.$ The following

information is available:

The figures below show the expected sales values of the products $($excluding discourts$)$:

Seventy percent $(70\%6)$ 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 morih of the sale and these debtors receive a $5\%$ discount. The balarce

is collected in the month after the sale.

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.

Labour costs are estimated to equal $10\%$ of the current month's sales $($excluding discounts$).$

These are paid for in the applicable month.

General and administrative expenses are projected to be R$792000$ for $2025.$ Except for

property taxes and directors' fees all other expenses are incured evenly throughout the year.

Froperty 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:

A company tax payment will be made on $01$ April $2025$ based on $50\%$ of the estimated profit of

R$300000$ for the financial year. The company's tax rate is $27\%.$

The closing bank balance on $31$ March $2025$ is expected to be R$15000.$