CASE: Mr Norman set up a new business on 1 January 20X8. He invested 110,000 in the new business on that date. The following information is available. - Gross profit was 20% of sales. Monthly sales were as follows: Month Sales January 10,000 February 20,000 March 25,000 April 30,000 May 35,000 June 40,000 July 50,000 - 50% of sales were for cash. Credit customers (50% of sales) pay in month following sale. - The supplier allowed one month's credit. - Monthly payments were made for rent and rates 1,000 and wages 350. - On 1 January 20X8 the following payments were made: 50,000 for a five-year lease of business premises and 2,000 for insurances on the premises for the year. - Staff sales commission of 1% of sales was paid in the month following the sale. Requirements: 1) Prepare a purchases budget for each of the first six months. 2) Prepare a cash flow statement for the first six months. 3) Prepare a statement of profit and loss 4) Prepare a statement of financial position as at 30 June 20X8. 5) Write a brief letter to the bank supporting a request for an overdraft.

CASE: Mr Norman set up a new business on 1 January 20X8. He invested 110,000 in the new business on that date. The following information is available. - Gross profit was 20% of sales. Monthly sales were as follows: Month Sales January 10,000 February 20,000 March 25,000 April 30,000 May 35,000 June 40,000 July 50,000 50% of sales were for cash. Credit customers ( 50% of sales) pay in month following sale. - The supplier allowed one month's credit. - Monthly payments were made for rent and rates 1,000 and wages 350. - On I January 208 the following payments were made: 50,000 for a five-year lease of business premises and 2,000 for insurances on the premises for the year. - Staff sales commission of 1% of sales was paid in the month following the sale, Requirements: 1) Prepare a purchases budget for each of the first six months. 2) Prepare a cash flow statement for the first six months. 3) Prepare a statement of profit and loss 4) Prepare a statement of financial position as at 30 June 208. 5) Write a brief letter to the bank supporting a request for an overdraft. CASE: Mr Norman set up a new business on 1 January 20X8. He invested 110,000 in the new business on that date. The following information is available. - Gross profit was 20% of sales. Monthly sales were as follows: Month Sales January 10,000 February 20,000 March 25,000 April 30,000 May 35,000 June 40,000 July 50,000 50% of sales were for cash. Credit customers ( 50% of sales) pay in month following sale. - The supplier allowed one month's credit. - Monthly payments were made for rent and rates 1,000 and wages 350. - On I January 208 the following payments were made: 50,000 for a five-year lease of business premises and 2,000 for insurances on the premises for the year. - Staff sales commission of 1% of sales was paid in the month following the sale, Requirements: 1) Prepare a purchases budget for each of the first six months. 2) Prepare a cash flow statement for the first six months. 3) Prepare a statement of profit and loss 4) Prepare a statement of financial position as at 30 June 208. 5) Write a brief letter to the bank supporting a request for an overdraft