Discuss these documents and the payment schedule of Business Activity Statements if Apollo Sales will have any cash flow issues during this period.?

Analyze Apollo Sales P/L cash budget for the period 1 January to 30 April and the December Business Activity Statement.. 

Apollo Sales P/L is registered for GST as a cash payer and has chosen the option to report and calculate GST every quarter. The following is the Summary of the Business Activity Statement for the Quarter ended 31 December.

 

Summary of the Business Activity Statement 1 October to 31 December

Summary

Amounts you owe the ATO-50300

PAYG tax withheld -12600

PAYG income tax instalment-4007

total-66907

Amounts the ATO owes you

GST on purchase-30280

Fuel tax credit-11654

Total-41934

payment due-24973

A Cash Budget of Apollo Sales P/L has been prepared for the period 1 January to 30 April. This Cash Budget does not include any GST/BAS payments for the December or March Business Activity Statements.

Cash Budget January February March April

Opening Cas balance $ 16000 $18600 $37250 $47850

Cash receipts $57200 $59200 $63000 $42200

Cash payments -$54600 - $40550 -$52400 -$67550

Closing cash balance $18600 $37250 $47850 $22300

As the accountant, construct an email addressed to the Manager of the company initiating discussions and providing recommendations to ensure sufficient funds are available to meet statutory requirements e.g. BAS due dates, records retention, valid invoices, ABN checking, cash management.