You are presented with the following forecast information relating to Baker Limited for the nine months to 30 September 20X7. 

Forecast profit and loss accounts (abridged) for the three quarters to 30 September 20X7:

Additional information:

1. Sales of tangible fixed assets in March 20X7 were expected to realise £12,000 in cash.

2. Administration, selling and distribution expenses were expected to be settled in cash during the month in which they were incurred.

3. Baker Limited includes as liquid resources term deposits of less than one year.

Required:

(a) calculate Baker Limited’s forecast net cash position at 31 March, 30 June and 30 September 20X7 respectively; and

(b) prepare a forecast statement of cash flow for the nine months to 30 September 20X7.

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Sales Cost of goods sold Gross profit Depreciation Administration, selling and distribution expenses Forecast net profit Forecast balances at Debit balances Tangible fixed assets at cost 90 day deposit at cost Stocks at cost Trade debtors Cash at bank and in hand Credit balances Debentures (10%) Trade creditors Taxation Proposed dividend 31 Dec 20X6 £000 360 15 40 50 80 80 8 15 March 20X7 £000 250 (200) 50 (3) (37) £10 31 March 20X7 £000 240 5 30 65 120 T 1 June 20X7 £000 300 (240) 60 (20) (40) 30 June 20X7 £000 480 5 40 75 - |0|| 140 Sept 20X7 £000 350 (280) 70 (4) (42) £24 30 Sept 20X7 £000 480 10 55 80 50 150 T T