The following is selected information relating to the operations of Ramblewood Plc a wholesale

distributer.

Current Assets as at $31$ March

a$.)$ Gross profit is $25\%$ of sales

b$.)$ Actual and budgeted sales data:

c$.)$ Sales are $60\%$ for cash and $40\%$ on credit. Credit sales are collected in the month

following the sale. The account receivables at March $31$ are a result of March credit sales.

d$.)$ At the end of each month $,$ inventory is to be on hand equal to $80\%$ of the following

months sales needs, stated at cost$.$

e$.)$ One half of a month's inventory purchases is paid for in the following month. The

accounts payable at March $31$ are a result of March purchases of inventory.

f$.)$ Monthly expenses are as follows: salaries and wages, $12\%$ of sales; rent, $$2500$ per

month; other expenses $($excluding depreciation$),6\%$ of sales. Assume that these expenses

are paid monthly. Depreciation is $$900$ per month $($includes depreciation on new assets$).$

g$.)$ Equipment costing $$1500$ will be purchase in for cash in April.