Mohammad started his new business as manufacturer for tables. He invested O.R 50,000 in his company.

He purchased a truck in Jan. for O.R 20,000

Mohammad purchased equipment in Jan. for O.R 10,000

Hired three employees paying them O. R 2,500 each month.

He bought raw materials in credit terms of O.R 8,000, it will be paid 60% in Jan.

20% in Feb. and 20% in March

He rented a factory paying the owner O.R 3,000 each month.

In Feb. Mohammad made credit sales for O.R 6,000, the amount will be collected

in Feb. 40% and 60% in March. He made credit sales in March. For O.R 8,000. 80% will be collected in march and

the remainder in April.

Required:

Prepare a prediction, based on the information provided, for cash flows during

the months Jan., Feb., and March.