Question $4$

Required

Information provided below $to$ prepare the following for February and March $2025$

$4\mathrm{.}1$ Debtors collection schedule $(4$ marks$)$

$4\mathrm{.}2$ cash budget $(16$ marks$)$

Information

The following budgeted information $is$ available for $2025$ and was provided $by$ Questor $limited$:

$an$ unfavorable blank balance $ofR75,000is$ expected $on$ the $31stof$ January

$70\%of$ the sales $is$ for cash, the balance $ison$ credit. Sales for January and February are expected $tobeR400,000$ and

$R600,000,$ respectively. Sales are expected $to$ increase $by10\%$ during March $2025.30\%of$ the credit sales are

expected $tobe$ collected $in$ the month $of$ the sales for the cash discount $of5\%.$ The remaining customers pay one

month later.

Questor Limited sells its products $atcost$ plus $100\%.$ All goods that are sold each month are replaced $in$ the same

month. All purchases are $on$ credit and the creditors are paid $in$ month after the purchase.

Salaries and wages cost $R162,000$ for March after $an$ increase $of8\%$ takes effect from $1$ March.

Rent expense cost $R130,000$ for $2025$ and $is$ payable monthly. The rental increase $by10\%on$ the $1stof$ March each

year.

Insurance costs $R3000$ per month but will $be$ paid $in$ full for $2025on$ the $28thof$ February $to$ take full advantage $of$

reduction $of10\%in$ the premiums for the year.

Municipal rates are paid half yearly $in$ February and August. The annual rates are calculated $at6$ cents per Rand $on$

the market value $of$ the property. The market value $of$ the property $of$ Questor $isR4000000\mathrm{.}00$

Monthly administration costs $ofR50,000(excludingR20,000$ for depreciation$)$ are payable $in$ the month $in$ which they

are incurred.

Advertising expenses $or$ estimated $tobe6\%of$ the monthly sales and are paid one month $in$ arrears

equipment with the cost price $ofR600,000$ will $be$ purchased during February. A deposit $ofR60,000$ will $be$ paid during

February and the balance $is$ payable $in$ five equal monthly installments commencing March.

A long$-$term loan $ofR300,000at15\%$ per annum interest $istobe$ raised $on$ the $1stof$ March. A capital repayment $of$

$R12,000$ and interest are payable monthly commencing $31$ March