How do we complete the Cash Flow (Inflow and Outflow) in this exercise? What is the net amount of Cash?

Actual sales: Estimated sales October N: 1,500 units December N: 1,700 units November N: 2,300 units January N+1: 2,000 units February N+1: 2,200 units March N+1: 1,900 units April N+1: 2,100 unitsDirect variable costs Materials costs per unit 0.75 Direct labour costs per unit 1.25 Total 2.00 Variable overheads Indirect labour costs per unit 0.20 Energy costs per unit 0.10 Other indirect costs per unit 0.50 Total 0.80 Fixed costs (weekly amounts) Employees 100 Procurement overhead 300 Electricity 75 Factory insurance 125 Other overheads 110 Total 710Penny decided to check this information against the accounts, which were up to date at the end of November. In the general accounts, she managed to identify the costs related to the workshop. Identifying the variable and fixed costs, she was able to compare total variable costs to variable costs for the units produced over the period and see that the estimates for unit costs were accurate. She also found the amount of fixed costs as stated by the head of production. She noted that sales and management costs amounted to approximately 6781 per week. This amount comprised the following: Payroll (including benefits in kind and payroll taxes): 400 Rental 200 Depreciation of office equipment 100 Other functional services 81 Total 781 Penny returned to see Harpagon with these initial figures, to discuss the assumptions to be applied in the budget. Together they defined a certain number of general principles: 1. The estimations for variable production costs were certainly accurate; given the objective of reducing these costs, but taking a cautious approach for the first quarter, it was decided to leave them as they were. 2. Fixed production costs were certainly (710, however, this amount did not include estimated depreciation; therefore, fixed production costs should be increased by the amount of depreciation; the value of the factory and machinery and equipment could reasonably be estimated at 670,000; the machinery and equipment probably had a recoverable value of 62,500; depreciation was to be calculated monthly over a 5-year useful life, on a straight-line basis. All these expenses were part of the production cost of goods sold.3. As the gures supplied for xed production costs, distribution costs and management costs were for one week, it was decided to apply a coefcient of 4.5 to estimate the monthly amount 4. To take into account the new strategic orientation, Harpagon asked Penny to budget E 900 in expenses per month to develop sales (direct marketing to potential customers}. 5. It was decided that the sale price would remain xed at 7 per unit for the rst quarter; sales commissions were set at 10% of sales revenues. Lastly, Penny asked Harpagon what he wished to do with the shareholder's current account He told her his father was going to recover his money (25,370). Harpagon decided to pay 10,000 into this current account, but wished to withdraw 1,400 per month om the company's accounts for his own requirements. Penny gathered some more information she was going to need: . The time schedule of invoice settlement by customers was as follows: 0 During the month of sale 30% o Month following the month of sale 40% 0 Second month following the month of sale 20% 0 Third month following the month of sale 10% 11 Materials purchases were payable in 30 days. Consequently, settlements were made in the month after the month of purchase. According to forecasts, 1,700 units of raw materials were to be purchased during December N. . All other expenses (payroll, overheads, commission, rental, etc) were paid in the month of purchase. 0 Because the company was operating under just-in-time, there were no stocks of raw materials and no stocks of nished products. Finally, Penny drew up a projected balance sheet at January 1, N+1 based on the documents analysed and the accounting position at the end of November: Assets Equity and Liabilities Land 5,000 Share capital 85,687 Factory machinery 70,000 Current accounts 25,370 Office equipment 13, 122 Accounts receivable 14,210| Accounts payable 1,275 10000 Cash TOTAL 112,332 TOTAL 1 12,332 Penny got down to work. She prepared a forecast budget for the first quarter (projected income statement, cash budget and projected balance sheet at March 31, N+1) in the following stages