Fina n cia l Man ag e men t : P rin cip le s an d A pp lica t io n s 5 E - S o lu t io n s Ma nu a l

Chapter 6

Working capital management

6.1 Operating cycle The following points could be included in the explanation: the operating cycle refers to the time that elapses between the purchase of new materials and the payment to the suppliers of those new materials this definition applies to manufacturers and retailers but differs slightly for other types of businesses such as service providers. The operating cycle is affected by a number of controllable factors including; efficiency of ordering and purchasing procedures speed of the production process whether goods are manufactured to customers order or for stock selling techniques employed by the sales force credit terms offered to customers discounts offered to customers for prompt payment and more effective collection procedures for slow payers.

All of these factors can be controlled by management with consequent reductions in the operating cycle, but it should be borne in mind that all such changes will usually involve extra costs. For instance, if the company wishes sales staff to sell more aggressively, it may have to offer them higher commissions on their sales; or if the number of credit days offered to customers is reduced in order to speed up collections, then some customers in future may buy from other suppliers. 6.2 Operating cycles The following points could be included in the explanation: the operating cycle is different for different types of businesses or enterprises service companies differ from retailers and manufacturers in that they do not carry inventories wholesalers and retailers are different to manufacturers in that they do not convert raw materials to finished goods in a service organisation, the operating cycle commences when employees carry out services for clients and ends when clients pay for the services rendered. 6.3 Operating cycle The following points could be included in the answer: a business should reduce its operating cycle up to the point when marginal savings obtained are equal to the marginal cost of implementation in other words, a business should only reduce the duration of the operating cycle to an optimum length or point based on financial considerations.

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6.4 Matching principle The following points could be included in the explanation of the matching principle: the principle of matching the repayment term of borrowings with the life of assets acquired with those borrowings the reason for this is that the cash flow generated by the use of the asset in the business will provide the funds required to repay the loan conversely, where the life of the asset is longer than the term of the loan, there will not be the cash flow to provide the funds to repay the loan. 6.5 Bank overdraft (a) Bank overdrafts should only be used to finance assets with short lives, such as seasonal increases in inventories and accounts receivable; (b) Overdrafts have been used as a method of de facto long-term finance and used to finance the acquisition of fixed assets. This can be a dangerous practice and, while a borrower may employ this method successfully when the capital market is buoyant, a constriction of funds or the banks dissatisfaction with the debt position of a business can result in the bank overdraft being withdrawn or the bank canceling or calling in the overdraft funds.

6.6 Asset financing The following points could be included in the reasoning: the cash flow generated by the use of the asset in the business will provide the funds required to repay the loan continuing with this reasoning, a business acquiring an item of machinery having an eight-year life would be advised to finance its acquisition with an eight-year loan should the machine be financed with a short-term loan, say, of one year, it will not have generated sufficient funds to cover the loan repayment and, unless the business has funds from other sources, the loan will have to be rolled over which has potential dangers a business runs the danger of having the lender refusing to renew the loan, charging excessively high rates of interest or imposing onerous conditions which can go so far as to give the lender a say in the management of the business if the loan is unable to be renewed, a business may have to be liquidated to repay the debt and this has been a common cause of business failure in Australia. 6.7 Categories of current assets The following points could be included in the discussion: current assets can be said to have both temporary and permanent components throughout a year, some current assets never fall below a certain minimum level and represent a permanent investment in the business many businesses have peak periods of alternating manufacturing and sales, resulting in increased levels of inventory, accounts receivable and cash during such times - such additional investment is only temporary examples of these businesses include soft drink manufacturers, primary producers and the clothing industry
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these types of business find it necessary to finance large inventories until the selling season and when those inventories are sold, accounts receivable will peak and then decrease as they are collected the matching principle requires that the maturity of all assets - fixed, permanent current and temporary current - be matched with the maturity of liabilities.

6.8 Financing of current assets The following points could be included in the commentary: in practice, the finance of current (temporary) assets is often provided automatically by suppliers offering trade credit other sources of finance (possibly bank overdraft) will have to be obtained if a suppliers credit terms expire before the proceeds of sales are collected the main concerns of the financial manager in relation to current assets will be to ensure that permanent current assets are not financed by short-term borrowings and that any necessary finance obtained for temporary current assets is appropriate. 6.9 Additional sales (1 800 000 1 400 000) Less Variable cost of additional sales (400 000 x .75) Marginal profit on additional sales Less Marginal costs New level of accounts receivable = [1 800 000 x 55] = 271 233 365 Old level of accounts receivable = [ 1 400 000 x 40] = 153 425 365 Increased accounts receivable = 117 808 Cost of additional investment = 117 808 x 15% = Net gain from new policy Decision - liberalise credit policies. 6.10 Additional sales (3 000 000 2 500 000) Less Variable cost of additional sales (70% x500 000) Marginal profit on additional sales Less Marginal costs New level of accounts receivable = [500 000 x 65] = 365 Cost of additional investment = 89 041 x 18% = Net gain from new policy Decision - adopt new policy. 89 041 16 027 133 973 500,000 350,000 150 000 400 000 300 000 100 000

17 671 82 329

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Note - the wording of this question does state the collection period on the additional sales is 65 days implying that the collection period on the remainder will be unchanged at 40 days. If the calculation is done using the total of the sales ($3 000 000), the cost of the additional investment is $96 164 and the net gain is $103 151 the decision would still be to adopt the new policy 6.11 Additional sales (750 000 500 000) Less variable cost of additional sales (80% x 250 000) Marginal profit on additional sales Less Marginal costs Bad debts - 5% x 750 000 Cost of additional investment: 1 x .01 x .20 x 750 000 = 2 x .01 x .30 x 750 000 = 3 x .01 x .25 x 750 000 = 4 x .01 x .20 x 750 000 = Net loss from new policy Decision - reject proposal. Note - an alternative solution to this question would be to calculate the present value of the additional accounts receivable, the answer is about the same and the decision would also be to reject the proposal. 6.12 Additional sales (3 800 000 3 200 000) Less variable cost of additional sales (82% x 600 000) Marginal profit on additional sales 600 000 492 000 108 000 37,500 1 500 4 500 5 625 6 000 17 625 55 125 5 125 250 000 200 000 50 000

Less Marginal costs New level of accounts receivable = [3 800 000 x 45] = 468 493 365 Old level of accounts receivable = [ 3 200 000 x 30] = 263 014 365 Increased accounts receivable = 205 479 Cost of additional investment = 205 479 x 14% = 28 767 Cost of discount = 2.5% x 35% x 3 800 000 = 33 250 62 017 Net gain from new policy 45 983 Decision - sales promotion was profitable.

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6.13 Time of collection 1 month 2 months 3 months 4 months Sales Estimated value Percentage collection 97.5 0.35 34.13 100 0.22 22.00 100 0.15 15.00 100 0.25 25.00 $96.13 Discount factor @ 1% 0.9901 0.9803 0.9706 0.9610 Present value 33.79 21.57 14.56 24.03 $93.95

Cash discount: $100.00 - 93.95 = $6.05 or expressed as a rate of discount = 6.05%. 6.14 Cost =
1

Discount per cent 100 - Discount per cent 4 100 - 4 66.12%

x x

365 Final due date Discount period 365 30 - 7

= = 6.15

Additional sales (2 800 000 2 200 000) Less variable cost of additional sales (92 % x 600 000) Marginal profit on additional sales Add Savings on discount allowed Old level = 2% x 30% x 2 200 000 = New level = 2% x 20% x 2 800 000 = Marginal profit Less Marginal costs New level of accounts receivable = [ 2 800 000 x 50] 365 Old level of accounts receivable = [ 2 200 000 x 20] 365 Increased accounts receivable = Cost of additional investment = 263 014 x 13% Cost of bad debts = 3.0% x 600 000 Net loss from new policy Decision - sales drive was not worthwhile. = = = =

600 000 552 000 48 000 13 200 11 200 2 000 50 000 383 562 120 548 263 014 34 192 18 000 52 192 2 192

6.16
Additional sales Marginal profit on additional sales Add Savings on bad debts Old level = 3.5% x 1 750 000 = 61 250 New level = 3.0% x 1 750 000 = 52 500 Add Savings on accounts receivable New level of accounts receivable = [1 750 000 x (48 - 45] = 14 384
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nil nil 8 750

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Cost of reduced investment Marginal profit

365 = 14 384 x 18%

2 589 11 339

Less Marginal costs Marginal costs on discount allowed Old level = 3% x 12% x 1 750 000 New level = 4% x 18% x 1 750 000 Net gain from new policy Decision policy will be worthwhile.

= =

12 600

6 300 6 300 5 039

6.17 (a) EOQ = = (b) Minimum orders = = = 6.18 (a) Annual material = requirements = EOQ = = (b) Minimum order = Orders per year = = (c) Purchase costs = Carrying costs = Order costs Total costs: = 4400 x 12 x 2.5 132 000

2
291

x 15 400 x 55 20

15 400 291 52.9 53 (to the nearest whole number)

x 132 000 x 120 2 3980 4000 metres 132 000 4 000 33 132 000 x 8 4000 x 2 2 33 x 120 = = = 1 056 000 4 000 3 960 $1 063 960

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(d)(i) Purchase costs

= = = = = =

132 000 x 8 2 000 x 2 2 132/2 = 66 x 120 132 000 x 8 6 000 x 2 2 132 / 6 = 22 x 120

= = = = = =

1 056 000 2 000 7 920 $1 065 920 1 056 000 6 000 2 640 $1 064 640

Carrying costs Order costs Total costs: (ii) Purchase costs Carrying costs Order costs Total costs: 6.19 (a) EOQ =

2 2

x 18 000 x 800 (25% x 80)

=
=

x 18 000 x 800 20 1200 18,000 1,200 24 days

(b) Days between = production = 6.20 (a) Steel balls per bike EOQ = = = =

100 x 18 000 1 800 000

x 1 800 000 x 55 0.01 140 712

Note - this calculation will be too large for most calculators. It can be done in an Excel spreadsheet using the square root (SQRT) function. 6.21 EOQ = = Reorder point =

x 182 500 x 42 0.02 27 686 10 x 182 500 52 x 5

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= = = Purchase costs = Carrying costs Order costs Total costs 6.22 (a) Reorder point = = = =

10 x 182 500 260 10 x 701.9 7 019 182 500 x 20c 27 686 x 0.02 2 182 500 x 42 27 686 = = = $36 500 277 277 $37 054

14 x 182 500 52 x 5 to the nearest whole figure 182 500 x 20c

= = =

9826.9 9827 $36 500

(b) Purchase costs = Carrying costs = Order costs Total costs: 6.23 (a)1st Quarter EOQ = = =

(4 X 702) + 27 686 x 0.02 2 (2 808 + 13 843) x 0.02 = 182 500 x 42 = 27 686

333 277 $37 110

2 2 2 2 2

x 240 000 x 750 5/4 x 240 000 x 750 1.25 x 60 000 x 750 1.25 x 290 000 x 750 1.25 x 30 000 x 750 1.25 = 16 971

2nd Quarter EOQ =

8 485

3rd Quarter EOQ =

18 655

4th Quarter EOQ = (b) 1st Quarter = =

6 000

Daily sales: 240 000 13 x 5 Daily sales: 240 000 65

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Usage during delivery period 2 x 3692 Add Safety stocks Reorder point

= =

7384 1000 8384

2nd Quarter

= =

Daily sales: 60 000 = 923 65 Usage during delivery period 2 x 923 = Add Safety stocks Reorder point = Daily sales: 290 000 = 4462 65 Usage during delivery period 2 x 4462 = Add Safety stocks Reorder point = Daily sales: 30 000 = 462 65 Usage during delivery period 2 x 462 = Add Safety stocks Reorder point =

1846 1000 2846

3rd Quarter

= =

8924 1000 9924

4th Quarter

= =

924 1000 1924

6.24 Rate of interest = = = Discount per cent x 100 - Discount per cent 2 x 100 - 2 37.24% 365 Final due date Discount period 365 30 - 10

Decision as the rate of interest is higher than the return on the short term securities, the discount should be taken. 6.25 Estimated cash collections - credit customers for January, February and March
January $ December sales 60% x 41 250 24 750 January sales 40% x 40 000 16 000 60% x 40 000 February sales 40% x 34 000 60% x 34 000 March sales 40% x 43 000 ______ Sub total 40 750 GST 4 075 Total 44 825 February $ March $

24 000 13 600 ______ 37 600 3 760 41 360

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20 400 17 200 ______ 37 600 3 760 41 360

Fina n cia l Man ag e men t : P rin cip le s an d A pp lica t io n s 5 E - S o lu t io n s Ma nu a l

6.26 Caros Pty Ltd Cash collections from customers for the months of January, February and March
January $ 56 000 28 800 61 200 40 800 50 400 ______ 146 000 14 600 160 600 _______ 123 200 12 320 135 520 33 600 28 800 ______ 96 400 9 640 106 040 February $ 32 000 March $ 34 000

Cash sales Credit sales November 40% x 60% x 120 000 December sales 60% x 60% x 170 000 40% x 60% x 170 000 January sales 60% x 60% x 140 000 40% x 60% x 140 000 February sales 60% x 60% x 80 000 Sub total GST Total

6.27 Natures Healthy Herbs Estimated cash collections from customers for the months of October, November and December
October $ 6 000 1 472 12 800 1 600 2 052 19 200 2 400 547 ______ 22 324 2 232 24 556 ______ 22 947 2 295 25 242 5 120 1 094 ______ 11 814 1 181 12 995 November $ 1 600 December $ 3 200

Cash sales Credit sales: August 10% x 80% x 18 400 September 80% x 80% x 20 000 10% x 80% x 20 000 October 95% x 9% x 80% x 30 000 80% x 80% x 30 000 10% x 80% x 30 000 November 95% x 9% x 80% x 8 000 80% x 80% x 8 000 December 95% x 9% x 80% x 16 000 Sub total GST Total

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6.28 Jaxa Products Pty Ltd Cash budget for the month of July
$ Receipts Cash sales Debtors Total receipts Payments Wages New machine Rent Purchases of trade goods Total payments Decrease in cash Opening balance Closing balance 12 000 8 000 20 000 4 600 54 000 2 000 58 000 118 600 (98 600) 9 000 (89 600)

6.29 Carxa Pty Ltd. Cash budget for the month of July
$ Receipts Cash sales Credit sales June: 40% x 60 000 July: 60% x 56 000 Sub total GST Total receipts Payments Purchase of a new machine Rent Purchases of trade goods Input tax credits (10% x 70 000) Wages GST accumulation Total payments Decrease in cash Opening balance (Debit balance in bank ledger account) Closing balance 54 000 24 000 33 600 111 600 11 160 122 760 12 000 10 000 48 000 7 000 15 600 10 000 102 600 20 160 7 500 27 660

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6.30 Barton Products Pty Ltd Cash budget for the month of August
$ Receipts Cash sales Credit sales July: 10% x 85 000 August: 90% x 85 000 Sub total GST Total receipts Payments Cash purchases Credit purchases June: 20% x 15 000 July: 80% x 29 000 Rent Input tax credits (10% x 52 600) PAYG deductions (20% x 12 600) Wages (net)(80% x (14 600 + 600 900)) Total payments Increase in cash Opening balance Closing balance 42 400 8 500 76 500 127 400 12 740 140 140 18 400 3 000 23 200 8 000 5 260 2 520 11 440 71 820 68 320 (6 000) 62 320

6.31 Sandros Pty Ltd Cash budget for the month of September
$ Receipts Cash sales Credit sales August 60% x 200 000 September 40% x 185 000 Sub total GST Total receipts Payments Cash purchases Credit purchases July 50% x 65 000 August 50% x 70 000 Rent (10 000 1000 +1750) Input tax credits (10% x 82 750) PAYG deductions (20% x 42 000) Wages (net) (80% x (45 000 +1500 2000)) Total payments Increase in cash Opening balance Closing balance 55 000 120 000 74 000 249 000 24 900 273 900 6 000 32 500 35 000 10 750 8 275 8 400 35 600 136 525 137 375 (2 000) 135 375

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6.32 Healf Medical Services Pty Ltd Cash budget for the quarter ended 31 March
January $ Receipts Fees received December 60% x 9 000 January 40% x 16 000 60% x 16 000 February 40% x 18 000 60% x 18 000 March 40% x 18 500 Total receipts Payments Purchases of medical supplies November 30% x 1 200 December 70% x 900 30% x 900 January 70% x 1 400 30% x 1 400 February 70% x 2 300 Other direct expenses Wages (net) PAYG Other administrative expenses Electricity Interest Equipment Total payments Increase in cash Opening balance Closing balance 5 400 6 400 9 600 7 200 ______ 11 800 ______ 16 800 10 800 7 400 ______ 18 200 February $ March $ Quarter $ 5 400 6 400 9 600 7 200 10 800 7 400 ______ 46 800

360 630 270 980 400 1 050 450 150 100 4 000 _____ 7 140 4 660 (1 000) 3 660 600 1 050 450 150 400 100 _____ 4 000 12 800 3 660 16 460 420 1 610 500 1 050 450 250 100 _____ 4 380 13 820 16 460 30 280

360 630 270 980 420 1 610 1 500 3 150 1 350 550 400 300 4 000 ______ 15 520 31 280 (1 000) 30 280

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6.33 Saltie Products Pty Ltd Cash budget for the quarter ended 30 September
July $ Receipts Sales May 9% x 100 000 June 30% x 90 000 9 % x 90 000 July 60% x 140 000 30% x 140 000 9% x 140 000 August 60% x 150 000 30% x 150 000 September 60% x 180 000 Sale of equipment Sub total GST Total receipts 9 000 27 000 8 100 84 000 42 000 12 600 90 000 45 000 108 000 4 000 _______ 169 600 16 960 186 560 August $ September $ Quarter $ 9 000 27 000 8 100 84 000 42 000 12 600 90 000 45 000 108 000 4 000 _______ 429 700 42 970 472 670

_______ 120 000 12 000 132 000

_______ 140 100 14 010 154 110

Payments Purchases May 10% x 40 000 4 000 June 90% x 35 000 31 500 10% x 35 000 July 90% x 60 000 10% x 60 000 August 90% x 80 000 Other marketing expenses 3 600 Major advertising campaign 12 000 Other administrative expenses 3 400 Insurance Equipment Input tax credits 5 450 Marketing managers salary (net) 2 100 Salespersons remuneration (net) 980 Office salaries (net) 2 800 PAYG remitted 2 500 GST accumulation 12 000 Repayment of loan plus interest 61 500 ______ Total payments 141 830 Increase/(decrease) in cash Opening balance Closing balance (9 830) 40 000 30 170

4 000 3 500 54 000 5 100 1 400 6 400 2 100 1 330 2 800 2 520 ______ 79 150 74 960 30 170 105 130
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31 500 3 500 6 000 72 000 7 000 6 200 25 200 30 000 14 640 2 100 1 400 2 800 2 670 ______ 170 010 16 550 105 130 121 680 54 000 6 000 72 000 15 700 12 000 11 000 25 200 30 000 26 490 6 300 3 710 8 400 7 690 12 000 61 500 ______ 390 990 81 680 40 000 121 680

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6.34 Toppletuff Ltd Cash budget for the quarter ended 30 September
July $ Receipts Sales April 10% x 280 000 May 30% x 260 000 10% x 260 000 June 60% x 200 000 30% x 200 000 10% x 200 000 July 60% x 240 000 30% x 240 000 August 60% x 302 000 Sub total GST Total receipts Payments Purchases June 95% x 80 000 July 95% x 64 000 August 95% x 80 000 Insurance Repairs and maintenance Advertising Audit fees Other expenses Replacement of plant Input tax credits Wages (net) Salaries (net) PAYG remitted GST accumulation Total payments Increase in cash Opening balance Closing balance 28 000 78 000 26 000 120 000 60 000 20 000 144 000 _______ 226 000 22 600 248 600 _______ 230 000 23 000 253 000 72 000 181 200 _______ 273 200 27 320 300 520 August $ September $ Quarter $ 28 000 78 000 26 000 120 000 60 000 20 000 144 000 72 000 181 200 _______ 729 200 72 920 802 120

76 000 60 800 76 000 5 200 400 6 000 3 600 10 000 10 120 56 000 11 200 30 000 6 000 ______ 214 520 34 080 (10 000) 24 080 9 600 6 000 400 6 000 2 400 8 520 58 800 11 200 28 800 ______ 192 520 60 480 24 080 84 560 7 000 400 6 000 2 400 9 180 61 600 11 200 30 000 ______ 203 780 96 740 84 560 181 300

76 000 60 800 76 000 9 600 18 200 1 200 18 000 8 400 10 000 27 820 176 400 33 600 88 800 6 000 _______ 610 820 191 300 (10 000) 181 300

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6.35 Crombie & McCunn Products Pty Ltd Cash budget for the quarter ended 30 September
July $ Receipts Sales May June 16% x 185 000 29 600 95% x 2% x 190 000 3 610 60% x 190 000 114 000 16% x 190 000 July 95% x 10% x 200 000 19 000 10% x 200 000 20 000 95%x 2% x 200 000 60% x 200 000 16% x 200 000 August 95% x 10% x 210 000 10% x 210 000 95% x 2% x 210 000 60% x 210 000 September 95% x 10% x 260 000 10% x 260 000 _______ Sub total 186 210 GST 18 621 Total receipts 204 831 Payments Purchases of material June 95% x 40% x 80 000 30 400 July 95% x 60% x 83 000 47 310 95% x 40% x 83 000 August 95% x 60% x 80 000 95% x 40% x 80 000 September 95% x 60% x 90 000 Repairs and maintenance 2 500 Rates 1 920 Advertising 150 Major advertising campaign Other expenses 5 500 Stationery 100 Purchase of new equipment Input tax credits 8 788 Direct wages (net) 24 500 Supervision (net) 700 Salaries (net) 2 800 PAYG remitted 10 500 GST accumulation 4 500 _______ Total payments 139 668 Increase in cash 65 163 Opening balance (500) Closing balance 64 663
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August $

September $

Quarter $ 29 600 3 610 114 000 30 400 19 000 20 000 3 800 120 000 32 000 19 950 21 000 3 990 126 000 24 700 26 000 _______ 594 050 59 405 653 455 30 400

30 400 3 800 120 000 32 000 19 950 21 000 3 990 126 000 24 700 26 000 _______ 212 690 21 269 233 959

_______ 195 150 19 515 214 665

31 540 45 600 2 800 30 400 51 300 2 800 200 2 400 4 500 140 12 000 10 374 31 500 700 2 800 13 500 _______ 162 614 71 345 143 252 214 597

47 310 31 540 45 600 30 400 51 300 8 100 1 920 350 2 400 14 100 360 12 000 27 578 84 000 2 100 8 400 36 000 4 500 _______ 438 358 215 097 (500) 214 597

4 100 120 8 416 28 000 700 2 800 12 000 _______ 136 076 78 589 64 663 143 252

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6.36 The Trail Riding Adventurers Pty Ltd Cash budget for the months of July, August and September
July $ Receipts Trail riding daily Accommodation & riding Deposits Credit card receipts Remainder Agistment fees Agistment fees (refund) Sub total GST Total receipts Payments Purchases of food Cash Credit May 60% x 40% x 60 000 June 40% x 40% x 50 000 60% x 40% x 50 000 July 40% x 40% x 85 000 60% x 40% x 85 000 August 40% x40% x 75 000 Horse feed Shoeing and drenching Building maintenance Rates Advertising Yellow pages listing Other expenses Telephone Replacement of stoves Input tax credits Staff wages (net) Chefs salary (net) Office salaries (net) PAYG remitted GST accumulation Total payments Increase in cash Opening balance Closing balance 10 000 24 000 1 980 132 300 3 000 _______ 171 280 17 128 188 408 August $ 9 000 27 000 2 700 211 680 5 000 _______ 255 380 25 538 280 918 September $ 15 000 16 000 4 320 238 140 7 000 (200) _______ 280 260 28 026 308 286 Quarter $ 34 000 67 000 9 000 582 120 15 000 (200) _______ 706 920 70 692 777 612

51 000 14 400 8 000

45 000

57 000

153 000 14 400 8 000 12 000 13 600 20 400 12 000 17 300 3 500 5 300 48 000 3 350 12 000 14 100 6 000 15 000 35 795 70 000 4 200 2 100 26 700 3 900 _______ 500 645 276 967 6 000 282 967

12 000 13 600 4 000 1 000 1 500 48 000 1 350 5 500 1 000 13 575 17 500 1 400 700 6 900 3 900 ______ 179 725 8 683 6 000 14 683 20 400 12 000 13 300 1 300 2 000 1 000 12 000 4 500 3 000 15 000 14 150 28 000 1 400 700 11 400 ______ 197 150 111 136 171 831 282 967

1 200 1 800 1 000 4 100 2 000 8 070 24 500 1 400 700 8 400 ______ 123 770 157 148 14 683 171 831

Notes - the deposits are based on the accommodation and riding budgeted income; the PAYG paid in July has to include the chef and office staff salaries for June; and the GST Accumulation account has to be paid in July.

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This is the last question in this chapter .

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