Question 1

Breda Centrum Inc. is a company based in the US State of Georgia. The company

manufacture Sportswear, with most of it sold to retailers on credit terms. However, the

company also have a factory shop where they sell at discounted prices to members of

the public. The table below contains data that has been extracted from the companys

operating budgets for the period running up to the end of 2020.

Income

from sales

to

retailers

Income

from

factory

shop

sales

Raw

materials

purchases Labour Overheads

$ $ $ $ $

April 330,000 22,000 210,000 95,000 28,000

May 380,000 26,000 232,000 110,000 32,500

June 400,000 30,000 255,000 120,000 32,500

The following additional information is available:

1. It is estimated that approximately 30% of cash from sales to retailers is received at