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Anubis

Tom operates Anubis as a sole trader, selling cell$/$mobile phone cases on the internet. The market is increasingly competitive. The retail price of phone cases is predicted to fall in the second quarter of $2018.$ Employees at Anubis will receive a $3\%$ rise in wages starting from $1$ April $2018.$

Tom has forecasted the following monthly cash outflows for January through March $2018$:

Heating and lighting: $$4000.$

Wages: $$50000$

Darl arinne e$.5700.$

enshot $2024-09-03$ at $07\mathrm{.}53\mathrm{.}17.$png

Delivery charges: $5\%$ of sales revenue.

Cost of goods sold: $$220000.$

Additional information:

Opening balance on $1$ January $2018$: $$8000.$

Sales revenue: $$300000$ each month.

Rent of $$2000$ paid quarterly: first payment in January $2018.$

Receipt of a tax refund in February $2018$: $$3000.$

$(...)$

a$)$ Using the information above, prepare a fully labelled cash flow forecast for Anubis from January to March $2018.$

$[5]$

b$)$ Comment on the predicted cash flow for Anubis for March $2018.$