The following project costs have been estimated relating to the upgrading of some equipment; all the costs are being incurred solely because of the project:

Ignoring tax, prepare a statement showing the outlays of cash on the project in 20X4 and 20X5. The new facility will be in full use from 1 July 20X5.

Transcribed Image Text:

20X4 January March December 20X5 January March One year's rent on premises paid 31 Equipment purchased 31 Installation of equipment completed and paid 31 Costs incurred in commissioning equipment May June One year's rent on premises paid Additional commissioning costs paid Training costs paid Additional working capital provided 31 30 December 31 Cash proceeds from sale of old equipment £ 12,000 20,000 4,000 8,000 12,000 6,000 3,000 16,000 5,000