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Question 3 The following forecast has been made available for the Dallara business. Today is the 1st of May and the business wants to draw up a cash flow forecast for May June and July. Months Purchases Wages General Expenses Rent Sales 22,200 28,700 Drawings 290 March 3,100 420 6,700 5,300 2,100 3,000 April 4,400 410 140 May 26,900 4,900 6,800 320 350 1,500 June 20,100 5,000 5,700 430 320 2,900 July 28,200 3,900 5,800 440 370 2,700 August 28,100 4,100 5,000 390 240 1,600 Additional Information The bank account for Dallara on the 1st May stands at 7,300. 20% of sales are recieved in cash at the time of sale. The remainder is collected 1 month later. The business has a 1 month credit arrangement with suppliers, Wages are paid 1 month in arrears. Rent is paid 1 month in advance. The business intends to buy new machinery costing 6,000. The payments will be spread: 20% to be paid in June and the remainder to be paid in July, Answer the following regarding the Cash Flow Forecast: In May: 3.1) What is the expected total receipts? 3.2) How much does the business have to pay out for purchases? 3.3) How much does the business have to pay out for wages? 3.4) How much does the business have to pay out for general expenses? 3.5) How much does the business have to pay out for drawings? 3.6) How much does the business have to pay out for rent? 3.7) How much does the business have to pay out for new machinery? 3.8) What is the net cash flow? 3.9) What is the opening bank balance for the month? 3.10) What is the closing bank balance for the month? In June: 3.11) What is the expected total receipts? 3.12) How much does the business have to pay out for purchases? 3.13) How much does the business have to pay out for wages? 3.14) How much does the business have to pay out for general expenses? 3.15) How much does the business have to pay out for drawings? 3.16) How much does the business have to pay out for rent? 3.17) How much does the business have to pay out for new machinery 3.18) What is the net cash flow? 3.19) What is the opening bank balance for the month? 3.20) What is the closing bank balance for the month? In July: 3.21) What is the expected total receipts? 3.22) How much does the business have to pay out for purchases? 3.23) How much does the business have to pay out for wages? 3.24) How much does the business have to pay out for general expenses? 3.25) How much does the business have to pay out for drawings? 3.26) How much does the business have to pay out for rent? 3.27) How much does the business have to pay out for new machinery? 3.28) What is the net cash flow? 3.29) What is the opening bank balance for the month? 3.30) What is the closing bank balance for the month

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