10 A Aa Abc de Aslibede Na Song AaBbCcDc AalbCode AaBb malce Helding Heating Aada Normal The Subt Quiz 4: Question Before attempting the quiz, complete this question: Mystlye Ltd is considering investing in new equipment and the management needs to estimate how much cash will be available to the company at the end of the year. From the administration department you have received the following information: 1) Cash available at the end of June was 2,000 2) Sales were 10,000 in May and were 15,000 in June. 3) Selling price will remain constant and all stock will be sold at the end of each month. 4) Monthly purchases are 60 per cent of the previous month's sales. 5) 30 per cent of sales are collected cash, the remaining 70 per cent is collected with two months credit ) 50 per cent of purchases are paid in cash, the remaining 50 per cent are paid after one month. ) Wages consists of 3,000 paid each month. ) The sales representatives are paid a 4 per cent commission on each month sales. The commission is paid one month in arrears. 9) The company has set up a standing order to pay the rent. The payments will start in September and the amount is 1,500 every two months 10) Telephone, heating and electricity bills to pay are estimated to be 100 every month. 11) The company has scheduled a 1p per share dividend payment to shareholders in December 2021 Company equity consists of 10,000 1 ordinary shares. 12) The depreciation charge for the companies fixed assets is 400 a month 13) A loan has been taken in January this year. The total repayable amount for this loan (including interest) is 600 a year. The loan is paid in equal monthly instalments over 12 months 14) The tax bill is 200 and it has to be paid in November 15) Sales forecast is reported in this table: 678 Sales (unit) Unit price Jul 100 100 Aug 140 100 Sep Oct 150 140 100 100 Nov 100 100 Dec 120 100 Required: Produce a cash budget from July to December