16.3 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

16.3 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 Jun

Sales 1000 1000 1000 2000 2000 2000

Cost of sales 400 400 400 800 800 800

Gross profit 600(NNN) NNN-NNNN1200 1200

Overheads 350 350 350 350 350 350

Net profit 250 250 250 850 850 850

Cash forecast

(in £’000)

Net profit 250 250 250 850 850 850

Capital expenditure -100 -250

Loan repayment -400

Cash flow 150 250 250 600 450 850

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