Answered

\begin{tabular}{|l|l|l|}
\hline
& Estimated income & \begin{tabular}{l}
Estimated \\
purchases
\end{tabular} \\
\hline
March & R8 000 & R3 000 \\
April & R3 000 & R5 000 \\
May & R5 000 & R2 000 \\
June & R6 500 & R4 000 \\
\hline
\end{tabular}

Additional information:

1. Blondie bought a new tumble-drier in March. She paid R700 deposit and her monthly payments thereafter will be R250 for the next six months.
2. Her average expenses per month are:
- Rental: R1 200
- Wages: R1 000
- Telephone: R180
- Electricity: R250
- Water: R120
3. Blondie's terms are strictly cash for both suppliers and customers.
4. In April, she will sell her old hairdrier for R800 cash.
5. In May, she will buy a new hairdrier. The deposit will be R450 and the monthly payment thereafter will be R120 for the next six months.

Calculate the cash flow for Blondie's business.



Answer :

GinnyAnswer
To calculate the monthly cash flow for Blondie's business, we'll go through each month step by step considering her income, purchases, additional expenses, payments for the tumble-drier, hairdryer, and any other special transactions. Here's how you can break it down:

### Monthly Income and Expenses

Additional Expenses (constant every month):
- Rental: R1200
- Wages: R1000
- Telephone: R180
- Electricity: R250
- Water: R120

Total Additional Expenses:
[tex]\[ \text{Total Additional Expenses} = 1200 + 1000 + 180 + 250 + 120 = R2750 \][/tex]

### March
- Income: R8,000
- Purchases: R3,000
- Additional Expenses: R2,750
- Deposit for tumble-drier: R700
- Monthly payment for tumble-drier: R250

[tex]\[ \text{Net Income} = 8000 - 3000 - 2750 - 700 - 250 = R1300 \][/tex]

### April
- Income: R3,000
- Purchases: R5,000
- Additional Expenses: R2,750
- Income from selling old hairdryer: R800
- Monthly payment for tumble-drier: R250

[tex]\[ \text{Net Income} = 3000 - 5000 - 2750 + 800 - 250 = -R4200 \][/tex]

### May
- Income: R5,000
- Purchases: R2,000
- Additional Expenses: R2,750
- Deposit for new hairdryer: R450
- Monthly payment for tumble-drier: R250

[tex]\[ \text{Net Income} = 5000 - 2000 - 2750 - 450 - 250 = -R450 \][/tex]

### June
- Income: R6,500
- Purchases: R4,000
- Additional Expenses: R2,750
- Monthly payment for tumble-drier: R250
- Monthly payment for new hairdryer: R120

[tex]\[ \text{Net Income} = 6500 - 4000 - 2750 - 250 - 120 = -R620 \][/tex]

### Summary of Cash Flow
- March: R1300
- April: -R4200
- May: -R450
- June: -R620

Therefore, the resulting monthly cash flow for Blondie's business is:
[tex]\[ \text{Cash Flow} = [1300, -4200, -450, -620] \][/tex]