1. The following information pertains to Company ABC for the months of May to August 2023. The opening cash balance on May 1st is $5,000. 3

Sales are net of taxes, with customers paying at 45 days from the date of the invoice (considering each month having 30 days).

Marketing expenses are paid at 30 days, R & D expenses at 60 days, Cost of sales at 45 days, General Expenses at 30 days, Selling expenses at 60 days, and Salaries on the 5th day of the following month.

Variable costs are paid as follows: 1/3 at 30 days, 1/3 at 60 days, and the remaining in July. For the remaining 1/3 of 2023, the amount is $2,500.

There is a 15% tax on sales, paid in the next month.

Planned Investments of ,200, $1,500, $2,800, and $3,000 are expected to be made in May, June, July, and August, respectively, and are paid for at 45 days.

Figures for March and April 2023 are as follows: Sales $7,500 and $8,200, Variable Costs $1,200 and $1,400, Marketing $300 and$400, R & D $200 and $250, General $150 and $180, Selling $180 and $200, Salaries $400 and $800. Cost of Sales were 35% of sales in March and 38% in April. Investments made were $800 and $1,000.

An amount of $2,000 will be paid for income tax on 15 July 2023. The company plans to borrow $6,000 in August for expansion projects in

September and October 2023.

The company has no current borrowing facilities.

Questions:

Prepare the cash flow statement for the four months to August 2023, round- ing all figures to the nearest whole number.