please do for kerry a budget cash flow statment for the four month of january to april 2021 , noting the maximum forecast overdraft

Keny is starting a car auction business in part of a converted warehouse, where she will be running car auctions on behalf of car collectors and limited companies. She sold her two classic cars, making 35,000 profit on the deal, she bought a second-hand car for 5,000 in December 2020, so she can put the money she's made into the new auction business, $20,000 was used as a deposit on the purchase of her space in the converted warehouse, and she obtained a commercial mortgage of 120,000 in December 2020 for the remainder of the purchase price. The interest rate on the mortgage is 4.3% and Kerry has negotiated a deal with her bank whereby she does not have to start paying off the capital sum until the second year of her business operation. The monthly interest-only payments are 430. Kerry will run one car auction each month, and her plans for the first four months of her business are as follows: January 2021: an auction on behalf of European Ltd. Kerry would expect the total sales of $150,000, the cash received immediately. Kerry keeps 20% of the total sale and the remaining will be paid to the European Ltd in February February 2021: an auction on behalf of Smith Ltd, which includes classic cars from different car makers. Kerry expects that the total sales are likely to be 120,000. Kerry will retain one third of this sum, the balance will be paid to the Smith Ltd in March. March 2021: an auction on behalf of ABC Id, ABC Ltd is a construction company, the director of ABC Lid wants to sell unused cars and vans. Kerry expects to sell all of the cars and vans and the total sales will be 130,000, of which she will retain commission of 25,000. Kerry will receive the money from purchasers within the month of March, and ABC Ltd will be also paid in March. April 2021: an auction on behalf of a famous car collector, includes a large number. of sport cars. Kerry expects the total sales will be 210,000, of which she will keep 15% of the sum. The 210,000 will be received from purchasers within the month of April, and collector will be paid in May. Expenses include the following: Cost of auction leaflet. A leaflet for each auction will cost 1,000 to produce. The leaflet for the first auction will have been paid for in December out of Kerry's remaining 10,000. The leaflet for the second third and fourth auctions will also be paid for one month in advance. Auction premises costs. Business rates are to be paid monthly, the cost is 1,500 per month Electricity costs will average out at 80 per month and Kerry expects to receive a bill for the first four months electricity in April, and to pay it in May. Wages. Kerty will pay a part time assistant 700 per month Other expenses. Kerry estimates that a total of 2,300 in other expenses will be paid each month. Drawings. She plans to draw 3,000 per month in cash. In each of the four months Kerry will have to spend an estimated 850 on buying in biscuits and other refreshments for the auction visitors. This figure also includes the cost of hourly paid staff to help on the day of the auction. Kerry bough a brand new truck in February 2021 for 80,000. The dealership agreed to receive the cash for the truck in March. Advertising: The initial round of press adverts will appear in December 2020, and the 2,000 cost will be paid for out of Kerry's remaining 10,000. Each month 700 will be paid to drivers to deliver cars to buyers. The bank balance at 1 January 2021 will be 7,000 after the car purchase, advertising and leaflet costs have been paid for. The car purchase, advertising and leaflet costs form part of Kerry's start-up capital. The auction premises are to be depreciated over 30 years on the straight-line basis, with an assumption of nil residual value. Required: (a) Prepare for Kerry a budget cash flow statement for the four months of January, February March and April 2021, noting the maximum forecast overdraft. [18 marks] (b) Briefly discuss whetberer.opt you think Kerry's business is going to be successful, identifying any areas where cash flow might be a problem if any. Total [7 marks]