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Aviation Excellence makes purchases every month and pays 50% cash in the month of purchase and 50% in the following month. They made R100,000 purchases

Aviation Excellence makes purchases every month and pays 50% cash in the month of purchase and 50% in the following month. They made R100,000 purchases in both May and June, and estimate to make purchases amounting to the following in the upcoming months:

  • July: R80,000
  • August: R100,000
  • September: R110,000
  • October: R150,000

They also have the following other expenses that are all paid in cash in the month incurred:

  • Office admin: R3,500 per month
  • Rent: R6,000 per month
  • Water and electricity: R500 in June and a 10% increase every month
  • Salaries: R30,000 in June, R60,000 in July, R90,000 in August, R120,000 in September, and R120,000 in October

Complete the following table to calculate the expense components of the company for June to October:

June

July

August

September

October

Cash purchases

Office admin

Rent

Water and electricity

Salaries

TOTAL CASH PAYMENTS

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