Ama Atta was asked to prepare a cash forecast to ascertain her ability to assess loan from GN Savings and Loans to enhance her surveying business. She had gathered the following information.

Her cash balance at the beginning of the year (January) is GH 6000

Her projected revenue is GH 2500 in January but it is projected to increase by 15% every month

Her surveying cost will increase by 12% but currently stands at GH 150 monthly

Salaries and General administrative expenses are scheduled to increase by 11% which currently stands at GH 150 and GH 500 respectively.

A loan of GH 10,589 will be contracted in month 1 but repayment will commence at the end of month 1. The principal payments on monthly basis is the principal loan amount divided by the twelve months.

Interest on the loan is a flat amount of GH 1,000 which will be spread among a 6 months repayment period that has been agreed with the lenders.

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Using excel template in the preparation of cash forecast (January to December) ascertain the ability of Ama Atta to successfully meet her loan obligations.