cshm sample assessment 1 question

manbo

Hi,

I am struggling to find the solution to the online cshm sample assessment question regarding Task 3.C

It is the question about identifying the values of the trade payables for period 4 and 5.

Can you please provide me with the solution and the calculations to find these values, please?

Thank you.

manbo

Guys please help with this one. Again, it is the cash management sample assessment 1. Task 3.C. The question under the heading purchases.

cooldog

Please post the question

manbo

The company pays its suppliers on the basis of 25% one month after the date of purchase, 40% two months after the date of purchase and 35% three months after the date of purchase.
At the end of period 3 the balance of trade payables is forecast to be:
Balance from period 1: 30,135
Balance from period 2: 66,900
Balance from period 3: 92,400
Trade payables at the end of period 3: 189,435

Complete the table below to identify the value of trade payables at the end of period 3 that will be paid in period 4 and 5.
Settlement of trade payables
Period 4 ?
Period 5 ?

SOLUTION HERE
Period 4: 24,6495
Period 5: 22,8045
The trade receivable balance at the end of period 5 is forecast to be 24,6585


Please explain the three numbers in the solution above. thanks

SandyHood

Dear manbo

If the question exactly the same as the question you have written here?
I have taken your figures and calculated how much we would have paid each period and the closing balance.
I would expect the two payments plus the closing balance to add up to the balance at the end of period 3 (or beginning of period 4).
I got:
Payment in period 4: £88,915
Payment in period 5: £68,180
End of period 5 balance: £32,340

Let me know if you would like my workings for these values.

Yours
Sandy

sandy@sandyhood.com
www.sandyhood.com

Rosierabbit

hi Sandy

would you be kind enough to post the workings to the above please

rosie x

SandyHood

Dear Rosie
If you email me at sandy@sandyhood.com
I'll send them as an attachment
Yours

Sandy