QUESTION 1 Al Reem perfumes Company is in the business of buying and selling of different types of perfumes products in different region of Oman and provided the following data to understand the cash position every month start from January to July 2021. The sales book reported the sales amount for seven months as below:- January February March April May June July 35.000 38,000 35,00036,80022,60028.800 42.400 The sales reported every month including cash sales and credit sales. Cash sales constitute 35% of total sales collected in the month of sales and the balance is credit sales received in the month following the month of actual sales. The detail of goods purchased in cash during seven months reported in purchase book as below:- January February March April May June July 1,000 2.500 4.600 5.200 3.800|5.4002.800 Company also purchased goods on credit from different suppliers. The detail of credit purchase from the month January to July is given below: - January February March April May June July 11.000 13.000 14.200|17,40013,80010,800|14.600 Cash purchases payable in the month of purchases and credit purchases are payable to supplier in two months following the month of credit purchase. It is also found from the accounting records that the company purchased plant and equipment for RO 30,000 in the month of February and it is payable in three equal instalments starting from April. Tax department has sent a notice to the company to pay taxes of RO 3,000 each in the month of June and July