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Eco Home, which sells eco-friendly home products, had the following details for March and April: Item March () April () Cost of Goods Sold 270,000
Eco Home, which sells eco-friendly home products, had the following details for March and April:
Item | March (£) | April (£) |
Cost of Goods Sold | 270,000 | |
Projected Increase (%) | 7% | |
Inventory Balance (End) | 25,000 | 27,000 |
Accounts Payable Balance | 35,000 | |
Cash Payments (Current Month) | 80% | |
Cash Payments (Following Month) | 20% |
Requirements:
- Determine the amount of purchases budgeted for April.
- Calculate the total cash payments for inventory purchases in April and prepare a cash budget.
- Prepare the tax calculation for the company if the profit before tax is £100,000 and the tax rate is 25%.
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