Another task that you are required to complete involves assisting the MD in the compilation of the management accounts for the six months ended 30 June 2020. Mr. Klopp would like to present the reports in a management meeting scheduled for 31 August 2020. The following information has been collected from the various books and records of the company.

1.An analysis of the company's costs reflects the following:

Using a technique called high-low method, Mr Klopp estimates that the variable costs for the year will be N$200 000 and Fixed costs N$350 000.

The average contribution margin ratio is estimated at 0.34.

2.Revenue is expected to grow at 2 per cent per month while expenses will grow by 1.8 per cent per month.

3.The company would like to invest excess cash in marketable securities but will sell them should it have cash flow limitations.