Read the case study below and then answer the questions that follow.

Fashion$-$shop forecasts look good

$$I have stood outside some of these fashion shops for hours counting the number of people coming out with their carrier bags and I am convinced my sales forecasts are OK$,$ announced Sayuri to her business partner, Korede. They were both putting the finishing touches to their business plan for an exclusive $$top brands only$$ fashion store in the city. Sayuri$$s primary research was not the only evidence they had used in arriving at the sales forecasts and the cash$-$inflow forecasts. Some desk research on the internet had also revealed the rapid growth of high$-$income consumer numbers spending increasing amounts on expensive clothing.

Cash$-$outflow forecasts had been based on estimates of electricity and telephone usage. Korede had found what he thought was a suitable shop, so they knew how much the rent would be$.$ They would pay themselves a salary of $2000$ a month each initially. Other labour costs were less certain. Should they employ full$-$time salaried staff or part$-$time hourly wage employees? The cost of buying the clothes was also uncertain. There would be no problem if they sold all the suits and dresses that they bought in $$ but how likely was that? And what would happen to cash$-$flow forecasts if stock was left unsold and huge price reductions had to be advertised? Both Sayuri and Korede realised why they had to construct a cash$-$flow forecast for their business plan. The almost completed forecast is shown below.

All figures in

$$000$ Jan Feb Mar Apr

Cash inflows

Owners$$ capital injection $28000$

Cash sales $68129$

Payments by debtors $0223$

Total cash in $34101412$

Cash outflows

Lease $18000$

Rent $2222$

Clothes purchases $6434$

Labour $3343$

Other costs $6\mathrm{.}522,51\mathrm{.}5$

Total cash out $35\mathrm{.}51111\mathrm{.}5$ y

Net cash flow Net monthly cash flow x $(1)2\mathrm{.}5$ z

Opening balance $0(1\mathrm{.}5)(2\mathrm{.}5)0$

Closing balance $(1\mathrm{.}5)(2\mathrm{.}5)01\mathrm{.}5$

Complete the cash$-$flow forecast by inserting:

a$)$ values for x$,$ y and z$.$

b$)$ Analyse two problems that Sayuri and Korede might have experienced when drawing up their cash$-$flow forecast.

c$)$ The first three months$$ actual trading was poor and cash sales were $20\%$ below forecast. Draw up a new cash$-$flow forecast for July assuming $20\%$ lower cash sales, $20\%$ lower clothes purchases, an opening cash balance of $(2000)$; all other factors remain unchanged.

d$)$ To what extent would drawing up a cash$-$flow forecast increase the chances of this business being successful?