Two secondhand vans due for delivery in September and October will be paid for in March and June at a cost of and respectively.
Kerrys remaining were used as following; Kerry paid for materials used in production in December. The initial round of press adverts costs was paid in December.
Business premises costs. Business rates are to be paid monthly; the cost is per month. However, from April the business rates will increase by
Other expenses. Kerry estimates that a total of in other expenses will be paid each month. The other expenses will increase to from May onwards.
No other cash inflows or outflows are expected in the months to June
At December the business has a bank overdraft of It is permitted a maximum overdraft at any one time of
Required:
Prepare a cash flow forecast for the months to June noting the maximum forecast overdraft.
