John Smith is planning to start a business selling bicycles on 1 January 2014. He has £25,000 capital to invest in the business and has arranged a bank loan of £25,000 over 5 years with a fixed interest rate of 6% per annum. Details of the anticipated income and expenditure for John’s Bikes Ltd are as follows:

Interest on the bank loan will be paid in instalments at the end of each month. The equipment will be depreciated over 4 years and the fixtures and fittings over 5 years; neither is expected to have any residual value at the end of their respective useful economic lives. At the end of the first quarter, John expects to have £10,000 of inventory.
Required Using a spreadsheet, construct the following budgeted financial statements for the first quarter:

(a) Cash flow budget for the 3 months 1 January to 31 March.

(b) Budgeted statement of comprehensive income for the 3 months 1 January to 31 March 2014.

(c) Budgeted statement of financial position at 31 March 2014.
You can refresh your knowledge of the layouts of these financial statements by referring to Chapters 2, 6 and6.

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Cash sales Credit sales Purchases Rent and rates Insurance Advertising Telephone and Internet Salaries Lighting and heating Equipment Fixtures and fittings 30,000 per month 5,000 per month (1 month's credit) 10,000 per month (2 months' credit) 24,000 per annum payable in full on 1 January 6,000 per annum payable monthly 1,000 quarterly, starting in January 100 per month 6,100 per month 200 per month 12,000 payable in full on 1 January 20,000 payable in full on 31 January