Unit 5 – Business accounting
Pass criteria 3, Merit criteria 1 and Distinction Criteria 1
P3 – Prepare a 12-month cash flow forecast to enable an organisation to manage its cash
M1 – Analyse the cash flow problems a business might experience
D1 – Justify actions a business might take when experiencing cash flow problems
Below is the 12-month cash flow forecast I prepared for SIGNature Ltd.
January February March April May June July August September October November December
Opening Balance £105,000.00 £5,473.34 £11,946.68 £7,720.02 £18,813.36 £29,906.70 £27,990.04 £42,053.38 £56,116.72 £55,385.06 £58,558.40 £61,731.74
Income
Sales £30,000.00 £30,000.00 £30,000.00 £37,000.00 £37,000.00 £37,000.00 £41,500.00 £41,500.00 £41,500.00 £25,000.00 £25,000.00 £25,000.00
VAT (from sales) £6,000.00 £6,000.00 £6,000.00 £7,400.00 £7,400.00 £7,400.00 £8,300.00 £8,300.00 £8,300.00 £5,000.00 £5,000.00 £5,000.00
HMRC reclaim
Total income £36,000.00 £36,000.00 £36,000.00 £44,400.00 £44,400.00 £44,400.00 £49,800.00 £49,800.00 £49,800.00 £30,000.00 £30,000.00 £30,000.00
Expenditure
Purchases £13,500.00 £13,500.00
£13,500.00 £16,650.00 £16,650.00 £16,650.00 £18,675.00 £18,675.00 £18,675.00 £11,250.00 £11,250.00 £11,250.00
VAT (paid on purchases) £2,700.00 £2,700.00
£2,700.00 £3,330.00 £3,330.00 £3,330.00 £3,735.00 £3,735.00 £3,735.00 £2,250.00 £2,250.00 £2,250.00
Salaries £6,333.33 £6,333.33
£6,333.33 £6,333.33 £6,333.33 £6,333.33 £6,333.33 £6,333.33 £6,333.33 £6,333.33 £6,333.33 £6,333.33
Rent £3,783.33 £3,783.33
£3,783.33 £3,783.33 £3,783.33 £3,783.33 £3,783.33 £3,783.33 £3,783.33 £3,783.33 £3,783.33 £3,783.33
Other £3,210.00 £2,210.00
£3,010.00 £2,210.00 £2,210.00 £3,010.00 £2,210.00 £2,210.00 £3,310.00 £2,210.00 £2,210.00 £3,310.00
HMRC paid £9,900.00 £12,210.00 £13,695.00 £8,250.00
Loan repayments £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00 £1,000.00
Overdraft charges
One off purchases £105,000.00
Total expenditure £135,526.66 £29,526.66 £40,226.66 £33,306.66 £33,306.66 £46,316.66 £35,736.66 £35,736.66 £50,531.66 £26,826.66 £26,826.66 £36,176.66
Net Cashflow -£99,526.66 £6,473.34 -£4,226.66 £11,093.34 £11,093.34 -£1,916.66 £14,063.34 £14,063.34 -£731.66 £3,173.34 £3,173.34 -£6,176.66
Closing Balance £5,473.34 £11,946.68 £7,720.02 £18,813.36 £29,906.70 £27,990.04 £42,053.38 £56,116.72 £55,385.06 £58,558.40 £61,731.74 £55,555.08
