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WinBikes Pty Ltd is selling and provides services for bicycles. As at December 2021, it has the bank balance of $25,000. Below are estimates for

WinBikes Pty Ltd is selling and provides services for bicycles. As at December 2021, it has the bank balance of $25,000. Below are estimates for the three months ending 31 March 2022

Items

January ($)

February ($)

March ($)

Sales

750,000

550,000

450,000

Bike Servicing

50,000

100,000

20,000

Salaries and Wages

250,000

200,000

200,000

Administration

50,000

50,000

50,000

Purchases - Bikes

500,000

400,000

300,000

Purchases - parts

10,000

14,000

3,000

Depreciation

$2,000

$2,000

$2,000

Interest income

$500

Additional information:

  • Sales are 75% cash and 25% credit. Credit customers are paying 60% in the month of sale, and 40% in the month following the sales. December's sale was $800,000.
  • Bike servicing are cash only to retail customers
  • Purchases - Bikes: are on credit, pay the month following the purchase. Purchase for December 2021 was $450,000
  • Purchase - parts: are paid by cash
  • Depreciation is according to a straight-line method
  • Due to COVID, the business has grown significantly. They have to extend the store and spend $200,000 to renovate the vacant store next door. The renovation will start in January 2022.

a) Calculate the total cash payments for February only, using the table provided below:

Names of cash payment items

February ($)

Total Cash Payments

?

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