QUESTION $4$

$(20$ Marks$)$

REQUIRED

Use the information given below to prepare the following for January, February and March $2025$:

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

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

$(6$ marks$)$

INFORMATION

$(14$ marks$)$

The following data and estimates are available for Dunlop Limited for the period $01$ December $2024$ to March $2025$:

$\backslash$table$[[,$December $2024,$January $2025,$February $2025,$March $2025],[$Credit sales,$R100000,R170000,R190000,R230000],[$Wages$,$R$130000,$R$150000,$R$186000,$R$184000],[$Fixed overheads,R$64000,$R$64000,$R$64000,$R$64000],[$Variable overheads,R$40000,$R$76000,$R$84000,$R$101000],[$Direct materials,R$102000,$R$114000,$R$94000,$R$104000]$ Additional information $1$ Seventy five percent $(75\%)$ of the sales is expected to be for cash and the balance on credit. Collections from credit sales are as follows: $40\%$ in the month of the sale, $60\%$ in the month after sale. $2.$ Since wages are paid on specific days, only $80\%$ of a month's budgeted wages are paid in that month. The rest is paid the following month. $3.$ Fixed overheads are paid in the month in whicj they incurred. $4.$ Payment of the variable overheads is delayed by one month. $5.$ Sixty percent$(60\%)$ of the direct materia will be purchased for cash and the rest on credit. Creditors are paid in the month after the purchase. $6.$ A loan of R$400000$ is to be obtained on $31$ March $2025$ to finance the expansion of the business commencing April $2025.7.$ The cash balance on $01$ January $2025$ is expected to be R$75000($unfavourable$).$