You have been approached by Jack Green who runs a small local business selling watches and other jewellery. He has asked for your help in creating a 12 month cash flow forecast. You will need to use the information given below: Sales and purchases for the 12 months will as follows TOTAL SALES PURCHASES JAN 34,800 39,000 FEB 29,330 19,400 MAR 36,400 42,000 APL 35,000 26,900 MAY 39,500 23,900 JUN 38,450 22,100 JUL 33,650 21,500 AUG 27,850 19,000 SEP 29,000 18,000 OCT|40,100 26,400 NOV 65,850 32,800 DEC|75,250 35,000 Jack will be investing 8,000 of his own savings into the business and will be borrowing a further 2,000 from the bank. Both of these amounts will enter the bank account in March and in the same month he will buy a car costing 9,500. Repayments on the loan will begin in April; the amounts will be 40 per month capital repayment and 35 per month interest The bank loan has been arranged on the agreement that Jack does not go overdrawn by more than 8,000. Jack has some living accommodation above the shop which he rents out. The rent he will receive from January onwards is 350 per month. The business mortgage on the shop is 1,000 per month. Business rates are likely to be 470 per month beginning in March. Jack's drawings will be 2,500 per month. He will pay 250 per month on advertising from January to August. This is expected to rise to 300 in September and October and 450 in November and December in the run up to Christmas. Insurance will be 220 per month payable each month starting in January. The wages bill will be 8,500 per month from January to May, rising to 10,000 per month from June onwards. Jack is thinking about taking on another employee to help him as he has been very busy lately. If this happens he would hope to take on somebody in June and their wages will be Jan additional 900 per month. Overdraft interest will be charged at 7% on a monthly basis. Interest will be paid monthly based on the previous months closing balance if it is negative. The opening balance of the forecast will be 11,250. Prepare an accurate 12 month cash flow forecast for Jack Green and be careful to use all the information provided. You have been approached by Jack Green who runs a small local business selling watches and other jewellery. He has asked for your help in creating a 12 month cash flow forecast. You will need to use the information given below: Sales and purchases for the 12 months will as follows TOTAL SALES PURCHASES JAN 34,800 39,000 FEB 29,330 19,400 MAR 36,400 42,000 APL 35,000 26,900 MAY 39,500 23,900 JUN 38,450 22,100 JUL 33,650 21,500 AUG 27,850 19,000 SEP 29,000 18,000 OCT|40,100 26,400 NOV 65,850 32,800 DEC|75,250 35,000 Jack will be investing 8,000 of his own savings into the business and will be borrowing a further 2,000 from the bank. Both of these amounts will enter the bank account in March and in the same month he will buy a car costing 9,500. Repayments on the loan will begin in April; the amounts will be 40 per month capital repayment and 35 per month interest The bank loan has been arranged on the agreement that Jack does not go overdrawn by more than 8,000. Jack has some living accommodation above the shop which he rents out. The rent he will receive from January onwards is 350 per month. The business mortgage on the shop is 1,000 per month. Business rates are likely to be 470 per month beginning in March. Jack's drawings will be 2,500 per month. He will pay 250 per month on advertising from January to August. This is expected to rise to 300 in September and October and 450 in November and December in the run up to Christmas. Insurance will be 220 per month payable each month starting in January. The wages bill will be 8,500 per month from January to May, rising to 10,000 per month from June onwards. Jack is thinking about taking on another employee to help him as he has been very busy lately. If this happens he would hope to take on somebody in June and their wages will be Jan additional 900 per month. Overdraft interest will be charged at 7% on a monthly basis. Interest will be paid monthly based on the previous months closing balance if it is negative. The opening balance of the forecast will be 11,250. Prepare an accurate 12 month cash flow forecast for Jack Green and be careful to use all the information provided
