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Fashion Hub, which sells trendy apparel, had the following details for June and July: Item June () July () Cost of Goods Sold 320,000 Projected
Fashion Hub, which sells trendy apparel, had the following details for June and July:
Item | June (£) | July (£) |
Cost of Goods Sold | 320,000 | |
Projected Increase (%) | 6% | |
Inventory Balance (End) | 28,000 | 30,000 |
Accounts Payable Balance | 40,000 | |
Cash Payments (Current Month) | 75% | |
Cash Payments (Following Month) | 25% |
Requirements:
- Determine the amount of purchases budgeted for July.
- Calculate the total cash payments for inventory purchases in July and prepare a cash budget.
- Calculate the gross pay for employees if the total payroll expenses are £50,000 and the tax rate is 20%.
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