NSP Ltd is expected to begin July with $55 000 cash.

NSP Ltd forecasts that sales revenue in June will be 100 000. July will be $95 000 and August will be $120 00. 50% of all revenues are in cash collected in the same month of the sale, while the other half is expected to be collected in the following month.

NSP Ltd is scheduled to receive $6 000 cash on a bill receivable in July.

Inventory purchases are expected to be $160 000 during July, however NSP Ltd will only pay for three quarters of these purchases during July.

In addition, operating expenses of $24 000 were incurred in July with half relating to depreciation. Operating expenses are paid in the month they are incurred.

At the beginning of the month, NSP has an outstanding short term borrowing of $3 000 due this month.

NSP Ltd requires a $20 000 minimum cash balance at the end of each month and the bank automatically extends credit to NSP Ltd in multiples of $8 000.

Required:

1. What is the total operating cash inflow for NSP Ltd in July?

Total Cash Inflow is:

2. What is the total operating cash outflow for NSP Ltd in July

Total Cash Outflow is:

3. What is the balance before borrowing/repayment for NSP Ltd in July

Net Operating Cash is:

4. What is the closing balance of cash for NSP Ltd in July?

The Closing Cash Balance is: