Problem 3 : A company expects to have $ 500,000 in bank on 1" March 2018 and requires preparing on estimate of cash position during the three months March April and May 2018: The following information is supplied: Month Sales Purchases Wages Jan $200,000 $ 120,000 $4.000 Feb. 180,000 150.000 2.000 March 160,000 100.000 3.000 April 180,000 130,000 5,000 May 150,000 140,000 6,000 Office expenses S 3,000 2.000 3.000 4.000 5,000 Factory expenses S 5.000 3.000 4.000 2.000 3.000 Selling expenses $ 4,000 2.000 2,000 3.000 4,000 Other information : 1. Credit sales and credit period is one month. 2. Suppliers supply goods( purchases) at two months credit. 3. Wages are paid in same month. 4. Office, factory and selling expenses are paid in the month following (next month) the one in which they are incurred. 5. The company's pays dividends to share holders and bonus to workers of $ 10,000 in the month of March. 6. Plant has been ordered and is expected to be received in April. It will cost $ 50,000 to be paid in April. 7. Income tax $ 20,000 is payable in May