Hearthington Pty Ltd sells camping equipment directly to both wholesale and retail customers. Provided below are estimates for three months ending 30 September 2021:

Additional Information: Sales to retail customers are cash only. Sales to wholesale customers are credit only and have 30 days credit term. However, due to disruption with the lockdown during COVID, 20% of wholesale customers are late for payments and pay in the 2nd month after the month of sale. The majority, 80% of wholesale customers continue paying on time, in the month after the month of sale. Sales wholesale customers for April, May and June are estimated at $400,000, $600,000 and $700,000. Sales Commissions to employees is 10% of the total sales and paid a month following the sale Hearthington has credit purchase arrangement with suppliers. Purchases are paid 2 months following the purchase. Purchases for April, May and June are estimated at $500,000, $650,000 and $500,000 At the end of each month, Hearthington consolidates and sells excessive inventory at cost for cash. Unless any other relevant details are provided, expenses are paid as incurred. Required: 32a) 3 Marks

A. Calculate the total cash receipts for July only, using the table provided below: (3 marks)

Calculate the total cash payments for July only, using the table provided below: (4 marks)

Sales - Retail Sales - Wholesale Salaries and wages expense Purchase of Supplies by credit Administration Proceeds from excessive inventory Utilities expenses Rental expenses Depreciation July $ 140,000 300,000 70,000 500,000 1,500 60,000 3,000 10,000 2,000 August $ September $ 160,000 200,000 500,000 650,000 70,000 70,000 800,000 900,000 1,500 1,500 140,000 50,000 3,000 3,000 10,000 10,000 2,000 2,000 B. Calculate the total cash payments for July only, using the table provided below: (4 marks) Names of cash payment items July ($) Total Cash Payments