PART 1 When Bob is made redundant, he decides to run a business selling e-bikes. In order to do this, he sets up a limited company, W Limited. He plans to deposit 1,000 in the company's bank account on 1 January 2022 and issue 1,000 shares, with a nominal value of 1 each, in his own name. He also plans to lend the company 20,000 using his redundancy payment. Bob will rent premises for his business at 2,300 a month. He will pay 10,000 for tools and equipment. At the start, he will pay 9,000 for bicycles and components for resale. At the end of the first month, he will pay 4,500 for more bicycles and components. At the end of the second month, he will pay 5,000 for bicycles and components. At the end of the\" m month he hopes to buy 5,500 of bicycles and components on credit, paying the following month At the outset, he will hire an assistant, at a cost of 2,200 a month, to work in the shop, whilst he does some work in the shop and all the administration. He will pay himself 1,200 a month in salary and plans to take further income as dividends. He estimates that he will use 160 worth of electricity per month, paid quarterly in arrears. At the beginning of January he will pay 1,440 for 12 months' insurance. Other expenses paid for during the period will be: per month Advertising 260 Mileage 220 He expects his rst three months' sales to be as follows: January 8,500 February 9,500 March 1 1 ,000 At the end of 3 months he expects to have unsold inventory, which would had cost him 10,000. He will depreciate non-current assets at a rate of 20% of original cost per yeah Wise Ltd Cash budget for January-March 2022 Jan Feb Mar Total E E Cash in Shares 1,000 1,000 Loan 20,000 20,000 Sales 8,500 9,500 1 1 ,000 29,000 Total 29,500 9,500 1 1 ,000 50,000 Cash out Rent 2,300 2,300 2,300 6,900 Tools 10,000 10,000 Goods for resale 13,500 5,000 18,500 Assistant 2,200 2,200 2,200 6,600 Bob's salary 1,200 1,200 1,200 3,600 Electricity Insurance 1 ,440 1,440 Advertising 260 260 260 780 Mileage 220 220 220 660 Total 31,120 11,180 6,180 48,480 Net cash in (1,620) (1,680) 4,820 1,520 Opening balance 0 (1,620) (3,300) Closing balance (1,620) (3,300) 1,520