Make a Cash Budget:r When Mark left university, he decided to run a business selling and repairing

Make a Cash Budget:r

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When Mark left university, he decided to run a business selling and repairing computers. In order to do this, he set up a limited company, Datahelp Limited. He planned to deposit £100 in the company's bank account on 1 January 2022 and issue 100 shares, with a nominal value of £1 each, in his own name. He also planned for the company to borrow £8,000 from his father Mark planned to rent premises for his business at £2,000 a month and lease test and IT equipment for £600 a month. He would pay £4,000 for signage and furniture. For each of the first two months he would spend £7,500 on computers for resale and components for repairs. In the third month he hoped to buy £7,000 of computers on credit. At the outset, he would hire a technician, at a cost of £2,000 a month, to do the repair work, whilst he mostly dealt with selling and administration. He would pay himself £1,000 a month in salary and planned to take further income as dividends. He estimated that he would use £200 worth of electricity per month and expected to get the first bill at the beginning of April. He would pay £1,200 for 12 months' insurance. Other expenses paid for during the first 3 months would be: £ per month 333 Rates Utilities (excluding electricity) Advertising Mileage (not deliveries) Each month he hoped to sell computers for £8,667 and charge £2,500 for repairs At the end of 3 months he estimated that he would have inventory, of unsold computers, which would have cost him £10,000 300 300 250 He estimated that wear and tear on the long-term assets of the business would amount to about £800 a year, so they would need replacing after about 5 years (5 x £800 = £4,000) When Mark left university, he decided to run a business selling and repairing computers. In order to do this, he set up a limited company, Datahelp Limited. He planned to deposit £100 in the company's bank account on 1 January 2022 and issue 100 shares, with a nominal value of £1 each, in his own name. He also planned for the company to borrow £8,000 from his father Mark planned to rent premises for his business at £2,000 a month and lease test and IT equipment for £600 a month. He would pay £4,000 for signage and furniture. For each of the first two months he would spend £7,500 on computers for resale and components for repairs. In the third month he hoped to buy £7,000 of computers on credit. At the outset, he would hire a technician, at a cost of £2,000 a month, to do the repair work, whilst he mostly dealt with selling and administration. He would pay himself £1,000 a month in salary and planned to take further income as dividends. He estimated that he would use £200 worth of electricity per month and expected to get the first bill at the beginning of April. He would pay £1,200 for 12 months' insurance. Other expenses paid for during the first 3 months would be: £ per month 333 Rates Utilities (excluding electricity) Advertising Mileage (not deliveries) Each month he hoped to sell computers for £8,667 and charge £2,500 for repairs At the end of 3 months he estimated that he would have inventory, of unsold computers, which would have cost him £10,000 300 300 250 He estimated that wear and tear on the long-term assets of the business would amount to about £800 a year, so they would need replacing after about 5 years (5 x £800 = £4,000)