ACCOUNTING 200116 TabComp Ltd is a retail distributor for MZB-33 computer hardware

TabComp Ltd is a retail distributor for MZB-33 computer hardware and related software and support services. TabComp prepares sales forecasts of which the first six months of 2014 are presented here.Cash sales account for 25% of total sales, 30% of total sales are paid by bank credit card and the remaining 45% are on open account. The cash sales and cash from bank credit cards sales are received in the month of sale. Bank credit card sales are subject to a 4% discount. The cash receipts for sales on the open account are 70% in the month following the sale and 28% in the second month after the sale. The remaining accounts receivables are estimated to be uncollectible.TabComp’s month end inventory requirements for computer hardware units are 30% of the next month’s sales. TabComp’s purchase price for the computer units is 60% of the selling price.TabComp LtdSales Forecast for first six months of 2014Hardware SalesSoftware Sales & SupportTotal revenues Units $ $ $January 130 390,000 160,000 550,000February 120 360,000 140,000 500,000March 110 330,000 150,000 480,000April 90 270,000 130,000 400,000May 100 300,000 125,000 425,000June 125375,000225,000600,000Total 675 2,025,000 930,000 2,955,000Required:1. Calculate the cash that TabComp can expect to collect during April 2014. Show all calculations. TabComp is planning the purchase of MZB-33 computer hardware units for March 2014.a. Determine the number of units that will need to be purchased. (2 Marks)b. Calculate the total costs of this purchase.