Reference no: EM133097195
Question - 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.
Required - Calculate the total cash payments for February only?