CASH-FLOW PROJECTIONS Using the cash-flow spreadsheet given BELOW:

Construct a cash-flow statement for years 1, 2, 3, 4 and 5 assuming that you achieve the level of sales in your sales forecast. Remember you should produce years 1 and 2 monthly and years 3, 4 and 5 quarterly. Do not forget to state the key assumptions that you have made in arriving at your figures.

Construct a profit and loss account for years 1, 2, 3, 4 and 5, assuming you achieve the level of sales in your sales forecast. Include a statement of key assumptions made. Construct a four-line summary (sales, gross profit, operating profit and profit before tax) of your profit and loss accounts for the full five years (annually). Carry out a sensitivity analysis, noting by how much each of the following must change seriously to affect the apparent viability of your business plan: Sales lower by x per cent Fixed costs higher by x per cent Cost of goods sold higher by x per cent.