=+vehicles at a cost of £150,000 in August. The present time is the beginning of May and the figures in the table are projected for the next six months.

For each month's sales 30 per cent of the cash is received in the month of sale, 40 per cent is received one month later, with the remainder coming in two months after sale, Debtors at the beginning of May are £200,000 and it is expected that of this,

£120,000 will be received in May and £80,000 in June.