A group of friends have formed a new business called Sassy Clothing, an online and mail order clothing business, in which they have invested 200,000 of their own capital. They intend to manufacture and sell quality clothes. They have set the business up and are selling direct to the final consumer, using a combination of aggressive marketing across a range of different media and also with the use of an automated web site that accepts online orders. To support this, they also have a department of telephone sales and support staff ready to help customers. The sales staff work in teams and receive a basic salary plus commission for each successful sale. By the start of July 205, they have spent 150,000 on tangible non-current assets, and they currently have the remaining 50,000 in their business bank account. They provide you with the following forecasted figures for their first 6 months of trading: Their projected cash receipts and payments are estimated to be as follows: In addition to the above, they expect to have to pay a tax bill of 20,000 in December 205. All transactions will go through their business bank account. Required: (a) Prepare an opening statement of financial position at the start of July 205. (b) Prepare a monthly cash flow forecast, showing the bank balance at the end of each of the 6 months and indicating what level of overdraft facilities the friends need to negotiate with their bank manager. (c) Explain what additional expense they should take into account as a result of needing the financial assistance (overdraft) referred to in (b). A group of friends have formed a new business called Sassy Clothing, an online and mail order clothing business, in which they have invested 200,000 of their own capital. They intend to manufacture and sell quality clothes. They have set the business up and are selling direct to the final consumer, using a combination of aggressive marketing across a range of different media and also with the use of an automated web site that accepts online orders. To support this, they also have a department of telephone sales and support staff ready to help customers. The sales staff work in teams and receive a basic salary plus commission for each successful sale. By the start of July 205, they have spent 150,000 on tangible non-current assets, and they currently have the remaining 50,000 in their business bank account. They provide you with the following forecasted figures for their first 6 months of trading: Their projected cash receipts and payments are estimated to be as follows: In addition to the above, they expect to have to pay a tax bill of 20,000 in December 205. All transactions will go through their business bank account. Required: (a) Prepare an opening statement of financial position at the start of July 205. (b) Prepare a monthly cash flow forecast, showing the bank balance at the end of each of the 6 months and indicating what level of overdraft facilities the friends need to negotiate with their bank manager. (c) Explain what additional expense they should take into account as a result of needing the financial assistance (overdraft) referred to in (b)