Ashton and Tate Limited

Cash Flow Forecast for the 6 months to 31 December

(all figures in 000s)

July Aug Sept Oct Nov Dec Notes

RECEIPTS:

From Sales/Debtors 50 50 70 90 120 150

Share Capital 80 - - - - -

TOTAL RECEIPTS 130 50 70 90 120 150

PAYMENTS:

Materials Suppliers 60 60 40 20 20 20

Wages 30 40 40 40 40 40

Overheads -- 20 20 20 20 20

Fixed Assets 20 20 60 - - -

TOTAL
PAYMENTS 110 140 160 80 80 80

Net Cash flow 20 (90) (90) 10 40 70

Balance B/F - 20 (70) (160) (150) (110)

Balance C/F 20 (70) (160) (150) (110) (40)

 Ashton and Tate Limited
Profit and Loss Account for the 6 months ended 31 December

000s 000s

Sales
680
Opening Stock 0

Purchases 280

280

Less Closing Stock ( 20)

260

add Direct Labour 240

Cost of sales (500)

Gross Profit 180

Overheads (130)

Net Profit 50
====
 Ashton and Tate Limited
Balance Sheet as at 31 December

000s 000s 000s

Cost Accumulated
AD NBV
Depreciation
Fixed Assets 100 10 90
====== ======

Current Assets
Stock (Inventory) 20

Debtors (Receivables) 150

170
Current Liabilities
Creditors (Payables) 60

Accruals 30

Bank Overdraft 40

(130)

Net Current assets 40

Total Assets less Current Liabilities 130

======

Financed By

Ordinary shares of 1 each 80

Reserves 50

130
======
 Workings
Cash Flow Forecast

Cash expenditure on overheads

= 130,000 less 10,000 depreciation = 20,000/month

6 months

Wages are 40,000 per month, (10,000 per week), but they are paid 1 week in
arrears so only 30,000 is paid in July. 40,000 is paid out in every subsequent
month and 10,000 remains owing (an accrual) on 31st December.

There is no payment for overheads in July and 20,000 is paid each month
thereafter. On 31st December there is an accrual for one months overheads of
20,000.

Profit and Loss Account

Material cost of sales is opening stock (nil here) plus purchases less closing
stock.
Depreciation must be included in overheads

Balance sheet

Fixed assets are shown at net book value (cost less accumulated depreciation)

Debtors are total sales less cash received from customers

Bank overdraft is given by the balance carried forward in the cash flow
forecast.

Creditors is materials purchases less payments to materials suppliers.

Accruals = the wages owing (10,000) and the accrued overhead expenses
(20,000). Alternatively these may be included in creditors.

Reserves is the retained profit for the period (as there are no brought forward
reserves)