August (Forecast) (Forecast) Slate Traders Ltd. is a wholesaler and retailer of tiles and decorative stone. They sell to a range of hardware stores, building and landscape supply companies. In addition they sell direct to the public. They have provided the following information on their sales, purchases cash payments and cash collections. Sales & Revenue Information Slate Traders Ltd - Sales Data May (Actual) June (Actual) July (Forecast) September Sales $108 360 $115 850 $116 500 S115 000 $118000 . It is estimated that 20% of the sales are for cash and 80% are on credit Of the credit sales -50% pay their accounts within the month of sale -30% pay in the month after sale - 20% pay during the second month after sale Purchases and Payments Information Slate Traders Ltd - Purchases Data June (Actual) July (Forecast) August September Purchases $57000 $58 250 $56500 559 400 All purchases of inventory are made on credit and 40% are paid for in the month they are purchased and 60% in the following month. All selling and administrative expenses, including a depreciation charge of $4,000, are incurred at the rate of $12,000 per month. Payment is made in the month in which the expense is incurred. New machinery costing $18,000 will be purchased in June and the payment will be made in the following month. Slate Traders has a loan of $360,000. Interest at the rate of 8% per annum is paid quarterly, the next due date for payment is 30 June Opening Bank Balance The balance of the bank account at 30 June is $56 420 (Forecast) (Forecast) August (Forecast) (Forecast) Slate Traders Ltd. is a wholesaler and retailer of tiles and decorative stone. They sell to a range of hardware stores, building and landscape supply companies. In addition they sell direct to the public. They have provided the following information on their sales, purchases cash payments and cash collections. Sales & Revenue Information Slate Traders Ltd - Sales Data May (Actual) June (Actual) July (Forecast) September Sales $108 360 $115 850 $116 500 S115 000 $118000 . It is estimated that 20% of the sales are for cash and 80% are on credit Of the credit sales -50% pay their accounts within the month of sale -30% pay in the month after sale - 20% pay during the second month after sale Purchases and Payments Information Slate Traders Ltd - Purchases Data June (Actual) July (Forecast) August September Purchases $57000 $58 250 $56500 559 400 All purchases of inventory are made on credit and 40% are paid for in the month they are purchased and 60% in the following month. All selling and administrative expenses, including a depreciation charge of $4,000, are incurred at the rate of $12,000 per month. Payment is made in the month in which the expense is incurred. New machinery costing $18,000 will be purchased in June and the payment will be made in the following month. Slate Traders has a loan of $360,000. Interest at the rate of 8% per annum is paid quarterly, the next due date for payment is 30 June Opening Bank Balance The balance of the bank account at 30 June is $56 420 (Forecast) (Forecast)
