Sarah is the owner of a small business making children's toys. She sells her toys to retailers on 3 months' credit. She receives 1 month's credit from her suppliers. Her cash flow forecast for the start of 2015 is given below. Table 1 (5000) January February March Cash inflow 15 20 19 Cash outflows: Purchases of stock 12 10 14 Wages 7 6 Other payments Total cash outflows 24 Net cash flow Opening balance Closing balance Note: numbers in brackets are negative. 4 4 *CO (c) Identify and explain two reasons why the business has a negative closing balance in March. Reason 1: Explanation Reason 2: Explanation