Question 5 Jack Co. Ld. (wholesale company) ends its financial year on 30 June each year of operation. You are requested to assist in the preparation of eash forecast in carly July 2017 to September 2017. The following information is available regarding its opentions. Management believes that the 20162017 sales level and pattem are reasodiable budget estimates of 20172018 month-by-month sales. Sales in 2016/17 were as follows: \begin{tabular}{lll} 20172018 & GHe \\ & July & 36,000.00 \\ & August & 42,000.00 \\ & September & 60,000.00 \\ & October & 54,000.00 \\ & November & 48,000.00 \\ & December & 40,000.00 \\ & January & 35,000.00 \\ & Februry & 55,000.00 \\ & March & 50.000 .00 \\ & April & 40,000.00 \\ & May & 60,000.00 \end{tabular} June Total 80,000.00 600,000.00 Sales collections are made as follows: During the month of sale In the first subsequent month In second subsequent month Non-collectible 50% 40% 8% 2% Payments in respect of fixed and variable expenses are forecast for the three months period of 2017/2018 as follows: July '07 August '07 September '07 GHss17,00015,40015,700 Additional notes a. It is anticipated that cash dividend of OH$,000 will be paid each half-year on the fifteen day of September and March, each year. b. During the year unusual advertising costs will be incurred that will require cash payment of OH3 1000 in August and OH;1,500 Seplember. c. Equipment replacements are made at a rate, which requires a cash outlay of GH \& 300 per month. The equipment has an average estimated life span of six years. d. A GHe600 corporation tax is to be made on 15 September 2017. e. At 30 June 2017, the company had a bank loan with an unpaid balance of OH28,000 The entire balance is due on 30 September 2017, logether with accumulated interest from IJuly 2017 at the nte of 10% p.a. f. The eash balance as at 30 June 2017 is GH t 1,000.00 You are required to prepare a cash forecast statement, by month, for the first three months of 2017/2018 financial] year. All computations and supporting schedules should be in a clear and concise manner. (25marka) (Total =25 marks)