Matt and Katie estimate that
the pattern of sales, over a year, at the new store will be similar to that at
the Westwood store. Therefore they
are projecting that the income for rentals, sales and confectionery over the
first year will be in the following proportions to the 2010 figures for the
The payments that they will have to make are:
1. Using all of the information above prepare a cash flow forecast for the new Highlea store for the next 12 months.
2. Prepare a chart from the cash flow forecast use this and the figures to analyse the projected performance of the Highlea store over the first 12 months. How might Matt and Katie use the cash flow forecast when meeting with their bank manager?