HD Tutorshave been providing face to face teaching of various subjects from level years 1 to 12.

They have decided to introduce a new service; Online Tuition, in August.

Below are estimates for the period ending September 2022:

June	June	July	August	September
Face to face tuition fees revenue	$ 510,000	$500,000	$525,000	$550,000
Online tuition fees revenue(new)			$150,000	$200,000
Stationery Expense	$ 7,000	$8,000	$10,000	$10,000
Purchase of Computer Equipment		$75,000	$45,000
Proceeds from sale of old computer equipment		$5,000	$8,000
Administration expenses	$ 15,000	$15,000	$17,000	$17,000
Dividends income		$2,000
Interest income			$500	$600

Additional Information:

• Online students must book and pay their tuition fee in the month prior to the month of the online class.
• Face to face students pay their fees in the same month they attend the class.
• Computer equipment is purchased using 50% credit, payable in the month following the purchase.
• Old computers are sold for cash
• Administration expenses for June and July includes depreciation expense of $1,000. The depreciation increases in the following months by $2,000.
• Stationery is purchased on 30-day credit terms; there is no stationery held on hand.
• In the absence of item related information, revenues / expenses are received / paid as earned / incurred.

32a)

3Marks

Using the below template, calculate expected receipts forAugustonly. (3 Marks)

Expected Cash Receipts	Workings
Total Expected Cash Receipts

Use the template

Expected Cash Receipts	Workings
Total Expected Cash Receipts

32b)

2Marks

Using the below template, calculate expected payments forAugustonly? (2 Marks)

Expected Cash Payments	Workings
Total Expected Cash Payments