Question: Based on the income statement below, how much working capital (cash) should Big Boot Inn have available to cover any loses over the next
Based on the income statement below, how much working capital (cash) should Big Boot Inn have available to cover any loses over the next 6 months? Provide your calculations and reasoning (6 marks). Big Boots Inn Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Cash Inflow Sales Cash Outflow Variable Expenses Materials Fixed Expences Rent Insurance Internet Total Cash Outflow Wet Change in Cash $10,000 $12,000 $14,000 $17,000 $20,000 $24,000 $ 6,500 $ 7,800 $9,100 $11,050 $13,000 $ 15,600 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $ 500 $500 $500 $500 $500 $ 500 $ 100 $ 100 $ 100 $ 100 $ 100 $100 $ 12,100 $13,400 $14,700 $ 16,650 $18,600 $21,200 $ (2,100) $ (1,400) $ (700) $ 350 $1,400 $ 2,800
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