please produce a Cash forecast for the six months ended 30th September 2022

You have ascertained the following information to assist with your assessment: Teebok is registered for VAT and charges 23% VAT on its sales. VAT returns are submitted on-line following the end of each (calendar) two monthly period and payment is made by the 23 of the relevant month. Ignore taxation other than VAT. A loan of 69,000,000 was taken out with Irish Bank plc on 1st October 2015 and is repayable in full on 1st October 2025. The interest rate on the loan is 10% per annum, payable quarterly on 1st January, 14 April, 1 July and 1st Oct each year. All Teebok's sales and purchases are on 30-day credit terms. All other expenses are paid immediately on receipt of invoice. Teebok depreciates its property, plant & equipment on a straight-line basis as follows: Buildings 40 years Machinery 20 years Delivery vans 5 years Fixtures & fittings 10 years Office furniture & equipment 10 years The following appendices are included: Appendix 1: Trial balance extracted from Teebok ecords 2022 Appendix 2: Details of Go Online's new manufacturing line and financial projections for the six months to 30th September 2022 Appendix 3: Abridged financial statements for two previous years to 30th September 2021 and 2020. O o 0 O Please note that whilst your report package is to include specified statements and reports, it is necessary to include all relevant data and conclusions into the financial assessment to ensure that the full economic impact considered. Appendix 2 - Financial projections for six months ended 30th September 2022 Go Online Teebok produce high quality, durable, branded sport wear for athletes. This is an elite market reliant on high profile sporting event endorsements and branding. Having reviewed the success of companies such as Nike., Go Online proposes to diversify into the general leisure wear market with Techok's own version of light-weight sport wear for general leisure use. As this product line will not be elite sport wear. it will be less expensive to produce but, as it is important not to compromise Teebok's quality reputation, it will still be more expensive to produce than competitor products. Direct costs per unit are forecast as... Cost type Per unit Materials: 61.50 per meter (incl of VAT @ 23%) 2meters Labour: 15 per hour 7 hours Go Online will aim its product at the quality end of the leisure market and the expected selling price of 300 (exclusive of VAT) per unit will reflect this. 369 inclusive of VAT As it also envisages that the product line expanding in the future Go Online bas provisionally signed up two well-known online 'influencers' to promote the product and enhance its marketability for the next six months. These influencers will cach be paid 25,000 + VAT @ 23% per month for the promotion campaign. 510,750 Other cost projections to be considered are: Fixed costs Apr May Jun Jul Admin/sales salaries 1,750,000 1,750,000 1,750,000 1,750,000 Light & heat 510,750 510,750 510,750 Selling expenses 1,168,500 1,168,500 1,168,500 1,168,500 Advertising 135,300 135,300 135,300 135,300 Maintenance/repairs 492,000 492.000 492,000 492,000 Motor expenses 650,375 650,375 650.375 650,375 Office expenses 215,250 215,250 215,250 215,250 Depreciation (per depreciation policy) Loan interest (per loan agreement) Aug Sep Total 1,750,000 1,750,000 10,500,000 510,750 510,750 3,064,500 1.168,500 1,168,500 7,011,000 135,300 135,300 811,800 492,000 492,000 2,952,000 650.375 650,375 3,902,250 215,250 215,250 1,291,500 Note: The following cost projections have been stated inclusive of VAT as follows: VT @ 23% VAT ( 13.5% Selling expenses Light & heat Advertising Petrol Maintenance & repairs Motor expenses (note: 61,872,750 relates to petrol costs) Office expenses In order for this line to be considered successful, it must produce a profit of 12,000,000 by the end of September 2022. No other product will be produced or sold during this period. Calculate Sales using this target profit. (nute need to use CVP formula) The sales volume required to meet the profit target will be achieved incrementally as follows: Month Apr 10% May 10% Jun 10% Jul 10% Aug 20% Sept 40% (For example, Apr sales will be 10% of sales) Expected sales mix per month is expected to be 70% directly to the public via on-line cash sales in Teebok's existing on-line store and 30% credit sales on 30-clay credit to retail outlets. It is expected that 50% of credit sales receipts will be received in the month following the sale with the remaining 50% received the following month. Inventory on hand @31st March 2022 cannot be used in the new product line. Material for the new production line will be bought in at the start of each month in the required amount to meet that month's sales. No inventory of material will be held. All material will be purchased on 30 day credit and paid for in the month following purchase. All operating expenses will be paid in the month incurred. Endorsement fees will accrue over the six months and be paid 50% June and the remainder in Sept. No new investment in machinery or equipment is required for the next 6 months. You have ascertained the following information to assist with your assessment: Teebok is registered for VAT and charges 23% VAT on its sales. VAT returns are submitted on-line following the end of each (calendar) two monthly period and payment is made by the 23 of the relevant month. Ignore taxation other than VAT. A loan of 69,000,000 was taken out with Irish Bank plc on 1st October 2015 and is repayable in full on 1st October 2025. The interest rate on the loan is 10% per annum, payable quarterly on 1st January, 14 April, 1 July and 1st Oct each year. All Teebok's sales and purchases are on 30-day credit terms. All other expenses are paid immediately on receipt of invoice. Teebok depreciates its property, plant & equipment on a straight-line basis as follows: Buildings 40 years Machinery 20 years Delivery vans 5 years Fixtures & fittings 10 years Office furniture & equipment 10 years The following appendices are included: Appendix 1: Trial balance extracted from Teebok ecords 2022 Appendix 2: Details of Go Online's new manufacturing line and financial projections for the six months to 30th September 2022 Appendix 3: Abridged financial statements for two previous years to 30th September 2021 and 2020. O o 0 O Please note that whilst your report package is to include specified statements and reports, it is necessary to include all relevant data and conclusions into the financial assessment to ensure that the full economic impact considered. Appendix 2 - Financial projections for six months ended 30th September 2022 Go Online Teebok produce high quality, durable, branded sport wear for athletes. This is an elite market reliant on high profile sporting event endorsements and branding. Having reviewed the success of companies such as Nike., Go Online proposes to diversify into the general leisure wear market with Techok's own version of light-weight sport wear for general leisure use. As this product line will not be elite sport wear. it will be less expensive to produce but, as it is important not to compromise Teebok's quality reputation, it will still be more expensive to produce than competitor products. Direct costs per unit are forecast as... Cost type Per unit Materials: 61.50 per meter (incl of VAT @ 23%) 2meters Labour: 15 per hour 7 hours Go Online will aim its product at the quality end of the leisure market and the expected selling price of 300 (exclusive of VAT) per unit will reflect this. 369 inclusive of VAT As it also envisages that the product line expanding in the future Go Online bas provisionally signed up two well-known online 'influencers' to promote the product and enhance its marketability for the next six months. These influencers will cach be paid 25,000 + VAT @ 23% per month for the promotion campaign. 510,750 Other cost projections to be considered are: Fixed costs Apr May Jun Jul Admin/sales salaries 1,750,000 1,750,000 1,750,000 1,750,000 Light & heat 510,750 510,750 510,750 Selling expenses 1,168,500 1,168,500 1,168,500 1,168,500 Advertising 135,300 135,300 135,300 135,300 Maintenance/repairs 492,000 492.000 492,000 492,000 Motor expenses 650,375 650,375 650.375 650,375 Office expenses 215,250 215,250 215,250 215,250 Depreciation (per depreciation policy) Loan interest (per loan agreement) Aug Sep Total 1,750,000 1,750,000 10,500,000 510,750 510,750 3,064,500 1.168,500 1,168,500 7,011,000 135,300 135,300 811,800 492,000 492,000 2,952,000 650.375 650,375 3,902,250 215,250 215,250 1,291,500 Note: The following cost projections have been stated inclusive of VAT as follows: VT @ 23% VAT ( 13.5% Selling expenses Light & heat Advertising Petrol Maintenance & repairs Motor expenses (note: 61,872,750 relates to petrol costs) Office expenses In order for this line to be considered successful, it must produce a profit of 12,000,000 by the end of September 2022. No other product will be produced or sold during this period. Calculate Sales using this target profit. (nute need to use CVP formula) The sales volume required to meet the profit target will be achieved incrementally as follows: Month Apr 10% May 10% Jun 10% Jul 10% Aug 20% Sept 40% (For example, Apr sales will be 10% of sales) Expected sales mix per month is expected to be 70% directly to the public via on-line cash sales in Teebok's existing on-line store and 30% credit sales on 30-clay credit to retail outlets. It is expected that 50% of credit sales receipts will be received in the month following the sale with the remaining 50% received the following month. Inventory on hand @31st March 2022 cannot be used in the new product line. Material for the new production line will be bought in at the start of each month in the required amount to meet that month's sales. No inventory of material will be held. All material will be purchased on 30 day credit and paid for in the month following purchase. All operating expenses will be paid in the month incurred. Endorsement fees will accrue over the six months and be paid 50% June and the remainder in Sept. No new investment in machinery or equipment is required for the next 6 months