Working capital management: The cash flow forecast Mr. FL. Markus runs a pharmacy in a shopping center. For each quarter, he prepares a cash flow forecast, budgets the operating costs and prepares a pre-calculated balance sheet. The purchase and sales forecasts for the second quarter of 2020 are shown in the following table: Month April May June Turnover (cash) Purchases (cash) Purchases (accounts payable) 25,000 5,000 10,000 20,000 3,000 7,000 21,000 2,000 5,000 Further data relating to the second quarter of 2020: 1. At the start of the quarter, the bank account and cash register contain 5,000 in total 2. As for purchase expense, the credit period is 1 month. The accounts payable amount to 10,750 on March 31st, 2020. 3. Accommodation costs payable in cash: April: 1,000 May: 1,500 June: 800 4. Private withdrawals per month: 2,000 5. Depreciation costs per year: Business premises: 3,600 Furniture: 1,500 6. The current outstanding amount on the mortgage is 20,000 and 10,000 on the bank loan. Repayments in June: Mortgage: 5,000 Bank loan: 3,000 7. The annual interest on the mortgage ( 7% interest rate) and the bank loan (@8% interest rate) is paid in June, together with the re- payments. 8. Mrs. A. Smit works as a part-time saleswoman in the pharmacy/perfumery. The total costs in wages are estimated at 12,000 a year. Over the year, this amount is paid to Mrs. Smit in equal amounts on the last day of the month. 9. Mr. Markus ordered a new cash register in January for delivery on April 1st. The purchase price of 7.500 has to be paid in cash in May. The economic life of this machine is estimated at six years. After six years the residual value is 300. Every year, the same amount of 1,200 is depreciated. Questions: 1. Prepare the cash flow forecast for the second quarter of 2020 and estimate the ending cash balances for each separate month. 2. If Mr. Markus wants to have a minimum of 7.500 in cash available, what steps could he take on the basis of the cash flow forecast