It is $1$ July $2020.$

You are a chartered accountant working for Oxia Capital plc $($Oxia$).$ Oxia is a financial advisory firm specializing in the provision of mergers and acquisitions advice. You have recently been assigned a new client,

Tech$-$Solutions plc $($Tech$-$Solutions$).$ Tech$-$Solutions is based in Northampton and specializes in designing websites and supporting software for its clients in the service sector. Over the last two years profits have begun to decline and Rory, the CEO, and his management team have observed the increasing number of requests from Tech$-$Solutions$$ existing and potential clients for the development of smartphone apps to complement their websites. Tech$-$Solutions currently does not have the in$-$house expertise to provide this service, but Rory is eager to remedy this to try and improve the declining sales projections.

Rory has identified an unlisted business, Howz$-$app Ltd $($Howz$-$app$),$ as a takeover target. It has a business app division which develops bespoke apps for a wide variety of businesses. Rory approached the managing director and sole shareholder of Howz$-$app to initiate takeover discussions three months ago and he indicated that he would be receptive to a cash offer for his shares. Tech$-$Solutions plans to fund this through a combination of additional debt and equity finance. The takeover would take place on $1$ January $2021.$

Rory has provided information to assist with the forecasting of cash flows for the combined entity should the takeover proceed, details of which can be found in the Appendix.

Rory is hopeful that the takeover of Howz$-$app will significantly improve Tech$-$Solutions$$ operating cash flows to such an extent that he will be able to expand the business $$ he would like to expand into the Middle East if possible. Rory has heard of Islamic Finance and has asked you to explain the concept.

Required: $1.$ Prepare a combined quarterly cash flow forecast for the year ending $31$ December $2021$ assuming the takeover of Howz$-$app by Tech$-$Solutions goes ahead.

$2.$ Explain the concept of Islamic Finance.

Note: Ignore all taxation.