July August September

$ $ $
Cah inflows
Cash received from customers w1 510000 432000 518400
obsolete inventory w2 25000
Total cash inflows 535000 432000 518400

Cash Outflows
Cash paid to suppliers w3 -370000 -342000 -288000
Payments for fixed & variable -160620 -118800 -158400
Payment of dividend -40000
Advertising costs -10000 -15000
Equipment -3000 -3000 -3000
Corporate tax -60000
Loan and interest payment w4 -288400
Total cash outflows -533620 -473800 -852800

Net cash flow 1380 -41800 -334400

Cash b/f 100000 101380 59580
Cash c/f 101380 59580 -274820

w1 May June July August September

Sales 600000 800000 360000 420000 600000

During the month 60% 216000 252000 360000

First month 30% 240000 108000 126000
Second month 9% 54000 72000 32400
510000 432000 518400

w2
Cost of goods sold 60%
Obsolete cost ($) 30000

Obsolete inv (sales value, $) 50000 (sell at half price in July)

w3 July August
Cost of goods sold 216000 252000
Less: opening inventory -810000 -936000
Add: Closing inventory 936000 972000
(Aug, Sep, Oct)
Purchases 342000 288000
Paid in Aug Paid in Sep
w4
Loan amount 280000
Interest per annum 12%

Unpaid balance 280000

Interest (3 months) 8400
Total payment 288400
October November
540000 480000