what is the answers for question (a), (b), (c)??

see the pics attached

Section 3 Continued (b) Prepare a projected income statement for the Madeti Company for the six months period ended 31 July 2020. Show clearly your calculation of the Cost of Sales and Closing Inventory figures. (8 marks) Projected Income Statement for the 6 months ended 31 July 2020 (c) How would you advise Mr Tanay, the bank manager concerning whether another bank loan of $75,000 should be provided to the Madeti Company? Explain briefly your answer. (5 marks)SECTION 3: Financial Planning (25 marks) The Madeti Company is an online wholesale supplier of products sourced from the Indian Continent. Aravind, the manager of the company has approached Mr Tanay, the bank manager of Hari International Bank for another 10-year bank loan of $75,000 (current interest rate is 18% per annum) to expand the company. Mr Tanay is requesting that the Madeti Company evaluate its cash flow situation and provide financial reports to the bank to show what is happening with their performance for the next six months period to 31 July 2020. Madeti Company: Balance Sheet as at 31 January 2020 Non-Current Assets $ $ Land and Premises 93,750 Less Accumulated Depreciation (9,000 84,750 Fixtures and Fittings 48,750 Less Accumulated Depreciation (14,250) 34,500 Total Non-Current Assets 119,250 Current Assets Cash at Bank 22,500 Trade Accounts Receivables 55,750 Inventory 70,000 Total Current Assets 148,250 Total Assets $267,500 Equity Share Capital $1 Ordinary Shares 115,000 Retained Earnings 23,125 Total Equity 138,125 Current Liabilities Trade Accounts Payable 54, 375 Total Current Liabilities Long-Term Liabilities Bank Loan (repayable in 10 years @15% interest per annum) 75,000 Total Liabilities 129,375 Total Equity and Liabilities $267,500 Anu, the accountant provided the following projections for the next six months ended 31 July 2020: 1. Sales revenue and purchases for the six months ended 31 July 2020 will be as follows: Sales S Purchases $ February 60,000 58,000 March 84,000 55,000 April 90,000 65,000 May 56,000 45,000 June 60,000 45,000 July 78,000 60,000 428000Section 3 Continued 2. Eighty per cent (80%) of sales are on credit and 20 per cent (20%) are cash sales. Credit sales are received in the following month. All purchases are on one month's credit. 3. Wages are $20,000 for each of the first four months. However, this will increase by 10% as from June 2020 and will stay at this new level for the next 6 months. All wages are paid in the month they are incurred. 4. The gross profit percentage on goods sold is 40 percent. 5. Administration expenses are expected to be $5,000 in each of the first four months and $7,000 in subsequent months. These figures include a monthly charge of $2,000 in respect of depreciation of non-current assets. Administration expenses are paid in the month they are incurred. 6. Selling expenses are expected to be $3,000 per month except for July 2020 when an additional advertising campaign costing $7,000 will also be paid for. The advertising campaign will commence at the beginning of August 2020. Selling expenses are paid for in the month they are incurred. 7. Two dividend payments of $8,000 will be made in March and July 2020. 8. Sarah, the Asset Investment Manager advises that the business intend to purchase, and pay $11,000 for new fixtures and fittings at the end of July. The estimated useful life of this new asset is 10 years with a disposal value of $2,000. The new asset will be delivered and installed in August 2020. 9. An Interest payment of $5,625 covering February to July will be made in July 2020. Required: (a) Prepare a projected cash flow statement for the Madeti Company for each of the six months to 31 July 2020. (12 marks) Projected Cash Flow Statement for the 6 months ended 31 July 2020 February March April May June July $ S Cash Inflow: Total Cash Inflow Cash Outflow: Total Cash Outflow Net Change in Cash Flow Opening balance Closing balance