CASE STUDY – FIRST STAGE LTD

• Sales and purchases for the 12 months are predicted to be as follows.

|Month |Sales |Purchases |
|January |£28,000 |£5,600 |
|February |£28,000 |£5,600 |
|March |£28,000 |£5,600 |
|April |£34,000 |£6,900 |
|May |£34,000 |£6,900 |
|June |£34,000 |£6,900 |
|July |£36,500 |£7,300 |
|August |£36,500 |£7,300 |
|September |£36,500 |£7,300 |
|October |£23,000 |£4,700 |
|November |£23,000 |£4,700 |
|December |£23,000 |£4,700 |

• Junaid and Jasmine are the only two shareholders, each investing £14,000 of their own money into the business.

• They also are hoping to secure a bank loan for £45,000 in January, to be paid back from February in monthly