Amy has started a new business in part of a converted warehouse. She sold her inherited property, making 80,000, and is currently renting a room so that she can put the money shes made into the new business. 60,000 was used as a deposit on the purchase of her space in the warehouse building, and she obtained a commercial mortgage of 80,000 for the warehouse of the purchase price. The interest rate on the mortgage is 3.5% and Amy has negotiated a deal with the lender whereby she does not have to start paying off the capital sum until 2022. The monthly interest-only payments are 234.

The business supplies cakes and related goods to coffee shops. Although the customers almost always eventually pay, Amy often has problems in collecting the cash due to her. The pattern of cash payment by customers, on average, is as follows:

Month of sale 30% of sales value

1 months following sale 30% of sales value

2 months following sale 10% of sales value

3 months following sale 30% of sales value

So, for example, 30% of the value of sales in March will actually be received in cash in March, 30% will be received in cash in April, and so on. Amy is preparing budgets for the six months ending 30 June 2020. Actual invoiced sales for the September December 2019 period are as follows:

September	47,000
October	49,300
November	36,400
December	39,000

Amy expects to invoice sales as follows in each of the six months to 30 June 2020:

January	40,800
February	38,000
March	40,400
April	37,200
May	47,400
June	50,400

Expenses include the following:

Drawings. She plans to draw 8,000 in February, May and June.

Rent of 5,200 each quarter is payable in March, June, September and December.

Two second-hand vans due for delivery in September and October will be paid for in March and June at a cost of 16,000, and 21,000, respectively.

Amy's remaining 20,000 were used as following; Amy paid 15,000 for materials used in production in December. The initial round of press adverts costs 5,000 was paid in December.

Business premises costs. Business rates are to be paid monthly; the cost is 500 per month. However, from April the business rates will increase by 20%.

Other expenses. Amy estimates that a total of 28,860 in other expenses will be paid each month. The other expenses will increase to 30,500 from May onwards.

No other cash inflows or outflows are expected in the 6 months to 30 June 2020.

At 31 December 2019 the business has a bank overdraft of 13,050. It is permitted a maximum overdraft at any one time of 20,000.

Required:

Prepare a cash flow forecast for the 6 months to 30 June 2020, noting the maximum forecast overdraft.