NSW TAFE Task 12 - Cash Flow Management Apollo Sales P/L is registered for GST as a cash payer and has chosen the option to report and calculate GST every quarter. The following is the Summary of the Business Activity Statement for the Quarter ended 31 December. Summary of the Business Activity Statement 1 October to 31 December Summary Amounts you owe the ATO GST on sales or GST instalment 1A 50,300 PAYG tax withheld 4 12,600 PAYG income tax instalment 5A 4,007 8A 66,907 Amounts the ATO owes you GST on purchases 1B 30,280 Fuel tax credits 7D 11,654 BB 41,934 Payment due 9 24,973 A Cash Budget of Apollo Sales P/L has been prepared for the period 1 January to 30 April. This Cash Budget does not include any GST/BAS payments for the December or March Business Activity Statements. CASH BUDGET January February March April Opening Cash Balance $16,000 $18,600 $37,250 $47,850 Cash receipts $57,200 $59,200 $63,000 $42,000 Cash Payments $54,600 $40,550 $52,400 $67,550 CLOSING CASH BALANCE $18,600 $37,250 $47,850 $22,300 a) Analyse Apollo Sales P/L cash budget for the period 1 January to 30 April and the December Business Activity Statement. Discuss these documents and the payment schedule of Business Activity Statements if Apollo Sales will have any cash flow issues during this period. Your answer should be between 80 and 120 words. b) As the accountant, construct an email addressed to the Manager of the company initiating discussions and providing recommendations to ensure sufficient funds are available to meet statutory requirements e.g. BAS due dates, records retention, valid invoices, ABN checking, cash management. Your answer should be between 100 and 130 words