You are presented with the following forecast information relating to Baker Limited for the nine months to 30 September 2013.

Forecast income statements (abridged) for the three quarters ending 30 September 2013:

\begin{tabular}{|c|c|c|c|c|}

\hline & & March & June & Sept \\

\hline & & 2013 & 2013 & 2013 \\

\hline & & $£ 000$ & $£ 000$ & $£ 000$ \\

\hline \begin{tabular}{l}

Revenue \\

Cost of aoods sold

\end{tabular} & & 250 & 300 & 350 \\

\hline Cost of goods sold & & $(\underline{200})$ & (240) & (280) \\

\hline Gross profit & & 50 & 60 & 70 \\

\hline Depreciation & & (3) & (20) & (4) \\

\hline \begin{tabular}{l}

Administration, selling and \\

distribution expenses

\end{tabular} & & (37) & (40) & (42) \\

\hline Forecast net profit & & $\underline{\underline{£ 10}}$ & $\underline{=}$ & $\underline{\underline{f 24}}$ \\

\hline Forecast balances at & 31 & 31 & 30 & 30 \\

\hline & $\operatorname{Dec}$ & March & June & Sept \\

\hline & 2012 & 2013 & 2013 & 2013 \\

\hline & $£ 000$ & $£ 000$ & $£ 000$ & $£ 000$ \\

\hline Debit balances & & & & \\

\hline Tangible non-current assets at cost & 360 & 240 & 480 & 480 \\

\hline 90-day deposit at cost & 15 & 5 & 5 & 10 \\

\hline Inventory at cost & 40 & 30 & 40 & 55 \\

\hline Trade accounts receivable & 50 & 65 & 75 & 80 \\

\hline Cash at bank and in hand & 80 & - & - & \\

\hline Credit balances & & & & \\

\hline Loan notes $(10 \%)$ & - & - & - & \\

\hline Trade accounts payable & 80 & 120 & 140 & 150 \\

\hline Taxation & 8 & - & - & \\

\hline

\end{tabular}

Additional information:

1 Sales of tangible non-current assets in March 2013 were expected to realise $£ 12,000$ in cash.

2 Administration, selling and distribution expenses were expected to be settled in cash during the month in which they were incurred.

3 Baker Limited includes as liquid resources term deposits of less than one year.

4 The directors have proposed that a dividend of $£ 15,000$ be paid on 28 February 2013 .

\section*{Required: $\square$}

(a) Calculate Baker Limited's forecast net cash position at 31 March, 30 June and 30 September 2013 respectively.

(b) Prepare a forecast statement of cash flows for the nine months ending 30 September 2013