cshm sample assessment 1 question

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.

Comments

  • manbo
    manbo Registered Posts: 6
    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
    cooldog Registered Posts: 20
    Please post the question
  • manbo
    manbo Registered Posts: 6
    edited February 2016
    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
    SandyHood Registered, Moderator Posts: 2,034
    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

    [email protected]
    www.sandyhood.com


    Sandy
    [email protected]
    www.sandyhood.com
    Rosierabbit
  • Rosierabbit
    Rosierabbit Registered Posts: 17 Regular contributor ⭐ ? ⭐
    hi Sandy

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

    rosie x
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Dear Rosie
    If you email me at [email protected]
    I'll send them as an attachment
    Yours

    Sandy
    Sandy
    [email protected]
    www.sandyhood.com
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