please answer part c

III. Accounting and Finance Question 4 Aval Foods Ltd, plans to invest (3,000,000 in new equipment next year in order to increase production by 50%. The increase in production will occur in May and continue thereafter. You may assume that all overhead costs DO NOT increase as a result of the increase in production You are paid invoices on time one month after supply. Last year's corporation tax bill I due daring June Your Copent Supplier has agreed to accept payment in May . You have 3,500,000 in the bark at present. All annual costs are to be paid each month at 1/12 of the total cost OSO * Starting with the month of Apel 2023, use the data above to create cash flow forecast to the nearest pound) from April to July, directly following the increase in production 110 marks 2015 Sale Price of which duty of which material Current Production me 0.25 5,000,000 units/month b) What are the limitations of cash flow forecast? Is marks! Wages 1220,000 annualcos annual cost 60,000 How does comparing actual revenues, costs and profits with how much cash forecast help business? Provide emples where appropriate. 15 mars annual cost [6,000 6440,000 al cost al cost (55,200 Utilities Bank Charges Office Expenses Tax & NI New Equipment Cost Interest Paid on Credit Balances Interest to be paid on Overdraft Corporation Tax 3.000.000 28 of credit balance per year ipad monthly of overdraft batante per year old 123 month (1,307.000 Paideach year in June Additional Notes Duty is paid on a monthly basis, one month following the date at which duty is incurred. That is, duty on April's sales is paid in May, and duty on March's sales is paid in April. The current production rate of March is the same as in April . You keep 1 month worth of materials on site. Increased materials are paid for starting In April. Income from increased sales starts in May, increased duty payments are due to start in June Your bank manaper has offered you an overdraft facility to cover the cost of expansion