Equipment will be depreciated at 10% of the cost per year and the company will
spend £160,000 on equipment.

calculate the Forecast Monthly Cash Flow Statement for the first quarter of 2021.

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QUESTION 3: Noodle V Ltd start business at the 1st of Jan 2021 with share capital of £110,000. They also take a long-term loan of £160,000 and commitment to pay equally £6,900 each month (include interest). The loan interest for the first quarter is £6,000. Sale are expected to be as follows: Jan £240,000 Feb £260,000 Mar £300,000 60% of sale are for cash. The remainder of sales will be collected 1 month later. To beginning business, Noodle V buy £108,000 and pay 100% in January. Further inventory is purchased at 50% of sales each month. Suppliers are paid 1 month later. The closing inventory should be £135,000. Wages are forecasted to be £20,000 per month, payable in the month they are incurred. Overheads excluding depreciation are forecast to be £40,000 per month and paid in the month they are incurred. Rent is £60,000 per year payable annually in advance. QUESTION 3: Noodle V Ltd start business at the 1st of Jan 2021 with share capital of £110,000. They also take a long-term loan of £160,000 and commitment to pay equally £6,900 each month (include interest). The loan interest for the first quarter is £6,000. Sale are expected to be as follows: Jan £240,000 Feb £260,000 Mar £300,000 60% of sale are for cash. The remainder of sales will be collected 1 month later. To beginning business, Noodle V buy £108,000 and pay 100% in January. Further inventory is purchased at 50% of sales each month. Suppliers are paid 1 month later. The closing inventory should be £135,000. Wages are forecasted to be £20,000 per month, payable in the month they are incurred. Overheads excluding depreciation are forecast to be £40,000 per month and paid in the month they are incurred. Rent is £60,000 per year payable annually in advance.

Answer rating: 100% (QA)

To analyze the financial performance and cash flows of Noodle V Ltd based on the given information we can prepare an income statement statement of cas... View the full answer