How did you get the purchase amounts?

Wine will be sold at a gross profit margin of 20%. 6 Sean intends to withdraw R500 per month for his own use and will employ a part-time assistant whom he will pay R400 per month. 7 Sean will need to purchase and install shelving that will be delivered and paid for at the beginning of June at a cost of R3,800. He will also lease a van a cost of R450 per month. 8 Other anticipated costs are: Sean intends to start his own business selling specialist wines. Some of his sales will be for cash from a shop that he intends to rent. He also plans to sell some wine on credit to local restaurants and hotels. The details of his business plan are as follows: 1. He will rent a shop for R10,000 per annum payable quarterly in advance. The landlord also requires a deposit of R5, 000 to be paid when the rental starts in June. 2. He will invest R12, 000 from his own savings and his father will loan him R8,000. His father will charge interest at a rate of 5% per annum payable annually after an interest free period of 6 months. 3. Sean will purchase and pay for R12,000 of wine in June and thereafter. To maintain that level of inventory, he will continuously purchase wine to replace what is sold. 4. Suppliers will allow one month's credit and credit customers will expect one month's credit. Carey, Knowles \& Towers-Clark: Accounting - A Smart Approach Chapter 1 - The Cash Budget Practice questions 5. Sales levels are predicted to be