I do apologise if this doesn't belong here and would appreciate if someone would point me in the right direction if that is the case
I'm doing a cash flow forecast for college and some of the data I need to enter is kinda ambiguously worded.
I'm essentially taking on the role of an accountent responsible for creating a cashflow forecast for the first 12 months, from April '17, the questions states:
You currently have savings of £65,000 but know that you will need additional funding to give yourself the best start possible. You have briefly spoken to your bank manager who has suggested you prepare a full business plan which includes a cash flow forecast for your first 12 months of trading.
Now this part is where I'm a little confused, the following comes from the data I must enter into the forecast:
You have the following information to prepare the budget:
Expected sales to SME's of £3,000 per month for the first 3 months then £3,500 per month for the next 3 months and £4,000 thereafter with one month's credit given
My question is about the credit, do I assume that the first payment of £3,000 will begin in May, and there will be a payment every month from there, so another 3k in June and July, 3.5k for the next 3 months and so on until the following March? Or do you think from the way this is worded that it only applies from when the £4000 payments begin? My cashflow looks incorrect to me because there is only 11 payments, surely there should be 12?
Thank you
Submitted February 04, 2017 at 09:00AM by ShittyWok- http://ift.tt/2l7QwCJ
