10:03 ... 46 X FNSACC513 - Assess.... At cu At the end of February 2018, he has 851 000 in the business bank account. A friend recommended Harry prepare a long- term forecast of future transactions. Therefore, Harry has provided you with the following information Note: March has 5 Fridays while April and Max have only 4 In the quarter March to May 2012 he earned the following cash fees: March SSO 000, April $41 000 and May S44 000. Harry purchases shampoo, conditioner and dyes as they are required. He believes these cost him 20% of his cash fees. Harry employs two full-time workers who cach runa vehicle. Both earn $550 per week and are paid cach Friday, He also employs a casual cleaner on the weekend to clean the cars and pays him $180 per week. This is also paid cach Friday, Petrol expenses each month is expected to be $1500. Insurance on the vehicles is due in 1 April. It is expected to cost $4500 this year. Vehicle registration is due 5 May. It is expected to be S1470 in total Advertising costs are $1600 per month. Harry incurs office expenses of $230 per month Each of the three vehicles has a mobile phone whose bills are capped at $79 per month each. Loan repayments of $3100 are due 20 March Harry usually withdraws $1000 each Friday for personal use Interest earned from business investments is expected to be SI500 each month. Assessment Questions 1. Prepare a cash budget for Hairy Mobile Hairdressing for the period March to May 2012 2. Comment on whether Harry should purchase the new vehicle during any of the three months from March to May. How will this affect the businesses liquidity in the short term? 3. Harry is thinking about buying a jet ski for his personal use and adding it to the assets of the business Advise him on this latest idea he has using the entity principle. 4. Explain two reasons why it is important to prepare variance reports