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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:

  1. Determine the amount of purchases budgeted for July.
  2. Calculate the total cash payments for inventory purchases in July and prepare a cash budget.
  3. Calculate the gross pay for employees if the total payroll expenses are £50,000 and the tax rate is 20%.

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