The Calculator Company Ltd has collected the following information to be used for the preparation of its budget for the next quarter:

Expected sales 10 000 units Opening stock of finished goods 2 000 units Closing stock of finished goods 2 000 units Direct costs of production Labour £30 000 Raw materials £45 000 Overheads £12 000 Fixed costs £11 000 Selling price per unit £15 All sales are for cash payable when the goods are supplied and all expenses are paid when incurred.
Prepare a cash flow forecast for the coming quarter.
Question 2.2 Williams Ltd produce children’s games which they sell to the retail trade. The budgeted profit and loss figures for the company for the period July–December are as follows:
Jul. Aug. Sept. Oct. Nov. Dec.
(£’000) (£’000) (£’000) (£’000) (£’000) (£’000)
Sales 80 120 200 240 320 400 Direct costs Materials 60 70 80 80 70 40 Labour 30 36 40 56 36 32 Overheads Production 32 38 44 48 36 24 Sales 12 12 20 30 30 40 Admin. 16 20 20 24 16 20 As management accountant for the company, you have been asked to prepare a cash flow forecast for the period October to December. You have been provided with the following information: