(a) Prepare, for Year 1 from January to December inclusive, based on the data and forecasts above:-
(i) a cash budget (NB: not a historic cash flow statement) for the period January to December on a month-by-month basis. This should show the total cash in or out for the year as a whole for each item of receipts and payments, and the closing balances of cash both for each month and at the year-end.
NB: if necessary, in order to be able to complete the cash budget assume that Gloria will be able to borrow as much as she needs to through a bank overdraft.
(ii) a budgeted income statement for the whole of the period January to December (not month-by-month), following the usual financial accounting conventions (e.g. the accruals principle, and concerning the recognition of assets).
(iii) a budgeted balance sheet (statement of financial position) as at 31st December.
Templates are provided in the Appendix below which indicate the structure and layout of these statements. To help in the marking process, it would be appreciated if in your answer you can follow these templates, including the sequence in which different items are dealt with. The various different items should each be shown individually - do not aggregate a number of different items under a composite heading such as 'administrative expenses' (for example) as this loses transparency.