Answer All Questions [Total: 25 marks] Thato Blair has worked for some years as a sales representative, but has recently been made redundant. He intends to start up in business on his own account, using P15,000 which he currently has invested with a building society. Thato maintains a bank account showing a small credit balance, and he plans to approach his bank for the necessary additional finance. Thato provides the following additional information. a) Arrangements have been made to purchase non-current assets costing P8,000. These will be paid for at the end of September and are expected to have a five-year life, at the end of which they will possess a nil residual value. b) Inventories costing P5,000 will be acquired on 28 September and subsequent monthly purchases will be at a level sufficient to replace forecast sales for the month. c) Forecast monthly sales are P3,000 for October, P6,000 for November and December, and P10,500 from January 2019 onwards. d) Selling price is fixed at the cost of inventory plus 50%. e) Two months' credit will be allowed to customers but only one month's credit will be received from suppliers of inventory. f) Running expenses, including rent but excluding depreciation of non-current assets, are estimated at P1,600 per month. g) Blair intends to make monthly cash drawings of P1,000. Required i) Prepare a cash flow forecast for the six months to 31 March 2019. (17 marks