# cshm sample assessment 1 question

Registered Posts: 6
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.

• Registered Posts: 6
• Registered Posts: 20
• 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.
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
• 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
• Registered Posts: 17 Regular contributor ⭐ ? ⭐
hi Sandy

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

rosie x
• 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