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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 600 600 600 1200 1200 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

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 600 600 600 1200 1200 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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