You are the co-founder of ACME Medical Devices, a medical device company that has been trading for the past two years. You have now made the decision to seek external investment into the company to expand into overseas markets. As part of the due diligence process, potential investors have asked you to prepare a cash flow statement for the first quarter 2016. Your records show ACME Medical Devices will have the following balances on the 1st January 2016: In addition, you anticipate the following transactions during the next three months: New bank loan of euro 200,000 to cover present overdraft on the 1^st January 2016 to be repaid euro 25,000 every quarter starting 31^st March 2016. Sales and purchases on one month's credit as follows: Payroll costs of euro 50,000 each month. Internal R&D costs as follows: Outsourced lab testing of euro 25,000 in January and a further euro 25,000 in March, paid at the end of the month in which the cost is incurred. New patent filing costs of euro 5,000 in February 2016, with ongoing IP fees of euro 1,000 per month. Advertising & Promotion costs of euro 4,000 per month, with an additional charge of euro 5,000 in March to cover a national medical devices sales event. Debtors and creditors must cleared within the month. Prepare a cash budget for the three month period ending 31^st March 2016. What level of investment would be required in order to have a closing balance of the 31^st March 2016 of euro 500,000? What are the advantages of preparing a cash flow statement