b. Sales data the company's sales for September 2021 are expected to be $1,500,000 and it is expected that it will increase by 12.5% each month over the previous month for the quarter ending December 31, 2021. Sales are expected to remain constant after December 31, 2021. C. Collections - credit sales are typically 60% of total sales. Outstanding amounts from sales are normally collected as follows: i. 75% during the month of sale ii. 25% during the month after sale d. Cost of goods sold - this is normally 70% of total sales. To have adequate stocks of inventory on hand, the company attempts to have inventory at the end of each month equal to half (50%) of the next month's projected cost of goods sold. Inventory is purchased on account and usually settled as follows: i. 45% during the month of purchase ii. 55% during the month after purchase e. Other monthly expenses: $ Expense type Salaries & wages Marketing & Distribution Administrative Costs Depreciation of Equipment Sales Commission 150,000 120,000 150,000 35,000 2.5% of total sales f. Equipment is to be purchased on October 1, 2021 for $1,200,000 on hire-purchase and paid for in 12 months monthly installment starting in December 2021. g. The directors have indicated an intention to declare and pay dividends of $120,000 on the last day of each quarter. h. The executives believe that the company should maintain a minimum opening bank balance of $500,000 starting October 2021. If the opening bank balance in any month following October is less than $500,000, then the company can borrow to cover the shortfall. Amounts borrowed must be in multiples of $1,000 (for example, $20,000 or $21,000 but not $20,500 or 21,750). The interest rate is 12% per annum. Repayment of principal and interest must be made on the last day of each quarter. i. Tax payable represents 25% of Profit before Tax and will be paid April 30, 2022. (16 marks) (b) Schedule of cash collected from customers. (12 marks) b. Sales data the company's sales for September 2021 are expected to be $1,500,000 and it is expected that it will increase by 12.5% each month over the previous month for the quarter ending December 31, 2021. Sales are expected to remain constant after December 31, 2021. C. Collections - credit sales are typically 60% of total sales. Outstanding amounts from sales are normally collected as follows: i. 75% during the month of sale ii. 25% during the month after sale d. Cost of goods sold - this is normally 70% of total sales. To have adequate stocks of inventory on hand, the company attempts to have inventory at the end of each month equal to half (50%) of the next month's projected cost of goods sold. Inventory is purchased on account and usually settled as follows: i. 45% during the month of purchase ii. 55% during the month after purchase e. Other monthly expenses: $ Expense type Salaries & wages Marketing & Distribution Administrative Costs Depreciation of Equipment Sales Commission 150,000 120,000 150,000 35,000 2.5% of total sales f. Equipment is to be purchased on October 1, 2021 for $1,200,000 on hire-purchase and paid for in 12 months monthly installment starting in December 2021. g. The directors have indicated an intention to declare and pay dividends of $120,000 on the last day of each quarter. h. The executives believe that the company should maintain a minimum opening bank balance of $500,000 starting October 2021. If the opening bank balance in any month following October is less than $500,000, then the company can borrow to cover the shortfall. Amounts borrowed must be in multiples of $1,000 (for example, $20,000 or $21,000 but not $20,500 or 21,750). The interest rate is 12% per annum. Repayment of principal and interest must be made on the last day of each quarter. i. Tax payable represents 25% of Profit before Tax and will be paid April 30, 2022. (16 marks) (b) Schedule of cash collected from customers. (12 marks)