FOR AUSTRALIA Cash flow Jumping Jacks Pty Ltd has provided an extract of their f
ID: 2570191 • Letter: F
Question
FOR AUSTRALIA
Cash flow
Jumping Jacks Pty Ltd has provided an extract of their forecasted cash flow and you have prepared the BAS for the September quarter, the payment due as shown on the BAS is $30,000.
Extracted forecasted cash flow
September
October
November
December
Estimated Closing bank balance
$30,000
($70,000)
($50,000)
$10,000
Required:
Jumping Jack’s Pty Ltd reports and pays GST quarterly. From the above information what would you bring to the attention of your client regarding the payment of this amount?
September
October
November
December
Estimated Closing bank balance
$30,000
($70,000)
($50,000)
$10,000
Explanation / Answer
Closing Balance in September is $30000 whereas the payment due on BAS is $30000 thus after paying due amount closing balance will be 0 (zero) and $30000 would get reduced from all the closing balances.
Thus in Decemeber closing balance would be (-) 20000 and company needs to pay GST at every quarter end that is company would be paying GST in December also
Our advice to the company would -
In October = Borrow a sum of $100,000 so that deficit can be matched
In November = company will have a positive balance of $20000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.