Question 04.: DIT Tronics sells a single product. DIT Tronics provides the following information for the period 1 July to go September 2mg: mmmm-- lI'Eost of goods sold: Mark-up is 15035 on cost. Stockholdlng policy: DIT Tronics purchases the inventory from a local distributor. Because the delivery is prompt, it minimises inventory holding costs by planning to keep on hand, at the end of each month, 25% of next month's estimated requirement. Payments to account payables: All inventories are purchased on credit. DIT pays :'5E of the accounts payable in the month following purchase and claims 5% discount. The remainder is paid in the mo nth following that. Receipts from accounts receivable: an: of all sales are credit sales. DIT offers a 5% discount for payments in the same month as sale and x of all accounts receivable take advantage of this offer. 0f the credit sales, 93% is collected in the month following sale. Bad Debt: The uncollected amount is treated as a bad debt. Depreciation: $I,ooo per month on equipment and $1,2oo per month on motor vehicle (treat as administration expenses]. Drawings: $2,ooo per month. Non-Current Asset: Equipment costing samba is to be purchased in July 2mg. Opening Cash Balance: same at 1 July 2mg