1.Expected sales are as follows:

August	R 350,000
September	R 280,000
October	R 300,000

2. Cash sales are expected to be 50% of total sales. The balance is on credit

3. Debtors are expected to settle their accounts as follows:

40% in the month of the sale

60% one month after the sale

4.Expected purchases are as follows:

August	R 100,000
September	R 40,000
October	R 50,000

5. All purchases are on credit. Creditors are paid one month after the purchases less 10% discount

6. Rent expenses amount to R 7000 per month , rent will increase by 15% from 1 October

7. Selling expenses are expected at 1% of total sales and are paid during the month of sales

8.Insurance amounts to R 360 000 per annum , payable monthly

9.the owner intends making a cash drawings of R 5000 each month

10. Interest on fixed deposit of R 2000 is due on 1 September

11.0The bank balance on 31 July is expected to be R 25 000 favorable