QUESTION THREE [25 MARKS] Prepare a 6-month cash flow statement (for the period January 2020 to June 2020) from the business information provided below (20 marks). Comment on the liquidity position of the business (5 marks): The information discussed below pertains to the year 2020 excerpt where stated otherwise. Ms Jones has been operating a small oil extraction company for the past five years. She has clients from all the surrounding townships. At the beginning of the year, her bank balance is R3 000. Her business has been doing very well and has potential to expand with the expected construction of a new residential area. She has forecast her sales to be R 30 000 a month for the next six months up to June. She expects sales to increase by 10% from July to December. The Business' sales are 60% cash and 40% credit. Half the credit amount is collected the following month of the sale) and the remainder the month after. Purchase of raw materials is usually 10% of sales. Sales for the previous month of December 2019 were R 20.000. Her operating expenses per month for the first six months are as follows: Transport R2 000, Labour R 6000, Rent R 2 000, Depreciation R 500 and Miscellaneous expenses, R 1500. The operating expenses are planned to be the same for the remainder of the year. Bonuses of R 6 000 are paid in November. Jones takes home a salary of R 8 500 every month. She intends to buy a computer for R 5000 in May. The business completed the repayment of a two-year loan in April. The loan repayment was R 500 per month. An outstanding debt of R 5 000 from the previous financial year was received in April QUESTION THREE [25 MARKS] Prepare a 6-month cash flow statement (for the period January 2020 to June 2020) from the business information provided below (20 marks). Comment on the liquidity position of the business (5 marks): The information discussed below pertains to the year 2020 excerpt where stated otherwise. Ms Jones has been operating a small oil extraction company for the past five years. She has clients from all the surrounding townships. At the beginning of the year, her bank balance is R3 000. Her business has been doing very well and has potential to expand with the expected construction of a new residential area. She has forecast her sales to be R 30 000 a month for the next six months up to June. She expects sales to increase by 10% from July to December. The Business' sales are 60% cash and 40% credit. Half the credit amount is collected the following month of the sale) and the remainder the month after. Purchase of raw materials is usually 10% of sales. Sales for the previous month of December 2019 were R 20.000. Her operating expenses per month for the first six months are as follows: Transport R2 000, Labour R 6000, Rent R 2 000, Depreciation R 500 and Miscellaneous expenses, R 1500. The operating expenses are planned to be the same for the remainder of the year. Bonuses of R 6 000 are paid in November. Jones takes home a salary of R 8 500 every month. She intends to buy a computer for R 5000 in May. The business completed the repayment of a two-year loan in April. The loan repayment was R 500 per month. An outstanding debt of R 5 000 from the previous financial year was received in April