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You are provided with the following additional information: Each month consists of four weeks. 20% of sales are for cash, and 80% on credit.

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You are provided with the following additional information: Each month consists of four weeks. 20% of sales are for cash, and 80% on credit. Half the credit customers pay in the month following the month of the sale and the balance two months later. All purchases are on credit and are paid for in the month following the month of the purchase after first deducting a 5% cash discount. Wages are paid one week in arrears. Overheads which include RM2,500 for depreciation each month are otherwise paid in the following month. In January 2021, the company will purchase a new delivery van for RM42,OOO less RM6,OOO trade in on the old van. Payment will be made 50% in the month of purchase and the balance of 50% in March. The bank balance at start of January 2021 is expected to be RM 2,800. No stock of raw materials or finished goods is held.

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