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ACCt- Bridgeport PLC Problem

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Question;Bridgeport PLC has produced the following summary profit budget and cash forecast for the next six months. What assumptions can you make about the business based on these figures? What questions would you want to ask in relation to the figures?Profit budget(in ?'000) Jan Feb Mar Apr May JunSales 1000 1000 1000 2000 2000 2000Cost of sales 400 400 400 800 800 800Gross profit 600 600 600 1200 1200 1200Overheads 350 350 350 350 350 350Net profit 250 250 250 850 850 850Cash forecast(in ?'000)Net profit 250 250 250 850 850 850Capital expenditure -100 -250Loan repayment -400Cash flow 150 250 250 600 450 850

 

Paper#44082 | Written in 18-Jul-2015

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