Task $1-$ due by Tuesday $3/12/24$ You are to prepare a $12$ month cash flow forecast for Sharma and Ryan based on the information presented below. Sales and purchases for the $12$ months are predicted to be as follows.

These sales and purchases figures are before VAT has been added. VAT should be added at the rate of $20\backslash \%$ and shown in separate rows for VAT received on sales and paid on purchases. Every three months a figure should be shown to either make payments to HMRC for VAT owed or reclaim VAT if an excess has been paid. Sharma and Ryan are the only two shareholders, each investing $\backslash (12,500\backslash )$ of their own money into the business. They also secured a bank loan for $\backslash (80,000\backslash )$ to be paid back monthly in instalments of $\backslash (1,000\backslash )$ so add this to your income in the first month. All the capital invested was to be used to buy capital equipment to the value of $\backslash (105,000\backslash ).$ Equipment bought was machinery of $\backslash (85,000\backslash )$ and fixtures and fittings worth $\backslash (20,000\backslash ).$ Sharma and Ryan also agreed an overdraft of up to $\backslash (20,000\backslash )$ at a charge of $\backslash (\backslash$mathbf$\{1.5\}\backslash \%\backslash )$ per month whenever their account was overdrawn.

They planned to rent a small factory unit at a cost of $\backslash (25,000\backslash )$ per year to be paid in equal monthly instalments. They estimated that, in addition, monthly rates would be $\backslash (1,700\backslash ).$

Sharma and Ryan planned to employ themselves along with two other employees, but were aware of the fact that money might be tight, so decided to pay themselves the same salary as the other employees, that being $\backslash (19,000\backslash )$ per year.

Other expenses were estimated to be:

Telephone

$\backslash (300\backslash )$ per $3$ months

Post

$\backslash (50\backslash )$ per month

Courier charges $\backslash (1,500\backslash )$ per month

Advertising $\backslash (160\backslash )$ per month

Additional adverts $\backslash (500\backslash )$ per quarter

Heat and light $\backslash (500\backslash )$ per month Insurance