Question 5 Jack Co. Ltd. (wholesale company) ends its financial year on 30th June each year of operation. You are requested to assist in the preparation of cash forecast in early July 2017 to September 2017. The following information is available regarding its operations. Management believes that the 2016/2017 sales level and pattern are reasonable budget estimates of 2017/2018 month-by-month sales. Sales in 2016/17 were as follows: Payments in respect of fixed and yariable expenses are forecast for the three months period of 20172018 oo frllowe Payments in respect of fixed and variable expenses are forecast for the three months period of 2017/2018 as follows: Additional notes a. It is anticipated that cash dividend of GH4,000 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 GHe 1000 in August and GH\& 1,500 September. c. Equipment replacements are made at a rate, which requires a cash outlay of GHe 300 per month. The equipment has an average estimated life span of six years. d. A GH\&600 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 GH 28,000 The entire balance is due on 30 September 2017 , together with accumulated interest from 1 July 2017 at the rate of 10% p.a. f. The cash balance as at 30 June 2017 is GH1,000.00