WillieWong has recently purchased a microcomputer system and has decided to set up a cash flow spreadsheet which will allow him to analyse his personal finances over the next six months

(January–June). His only source of income is his annual net salary of £18,000. After examining his bank statements for the past year,Willie has worked out average expenses. These include monthly payments for rent (£250), food (£150), car expenses (£90), and sundries (£100) as well as twomonthly bills for electricity (£100) and telephone calls (£70). Because of his recent microcomputer purchase, Willie has estimated that he will have a bank overdraft of £2000 on 1 January. Willie Wong intends to take a holiday in July and he would like to know how much money will be available. Set up a cash flow model showing net cash flows and balances at the end of each month. How much will Willie have for his holiday?

(Answer: Willie Wong will have £2,950 available for his July holiday.)