Prepare a cash flow forecast for the following start-up company. (No Sales were generated before October 2016)

2016: October sales = $ 8,000

2016: November sales = $10,000

2016: December sales = $10,000

2017: January sales = $10,000, then rise $1,000/month for 2 months, then rise $3,000/month for 3 months.

Sales on account take 2 months? to be paid back. 50% of all sales are on account.

Cost of sales (materials) = 40% of sales in the month, purchases for each month?s sales are made one month in advance and paid in cash.

Insurance expense is $3,000/quarter - payable in December 2016, March 2017 and June 2017

Wage expenses are $3,000/month beginning in October 2016

Machine was bought in February 2017 for $5,000

Cash 1/1/2016 = $8,500

Calculate the cash flow forecast as of June 2017.A cash flow forecasting template is attached for your convenience.

12 Month Cash Flow Template January February March April May 0 0 0 0 0 0 0 0 0 Total Expenditure 0 0 0 0 0 Balance Carried forward 0 0 0 0 0 Balance Brought forward Sources of Income Cash Sales Cash from Credit Sales Total Income Expenditure Rent Utility Bills Wages Insurance Materials nth Cash Flow Template June July August September October November December 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0