Peter Sung has recently retired from the Coventry University, London and plans to set-up his own souvenir shop. He plans to invest £45,000 (£15,000 each in January, February, and April) in the new enterprise and has asked for your assistance to produce a cash budget as the bank has asked for that prior to approving his request for an overdraft facility for his business. The following has been budgeted for the first six months of the business:

costsVariable costs
January 13,0005,0003,500 7,0004,600
February 11,0004,0002,500 2,600
March 8,0006,0004,200 3,680
April 9,2007,1003,00014,0003,200
May 10,0005,8003,200 2,000
June 12,000 8,2004,000 3,000

The following additional information is available:
i.60% of each month sales are expected to be for cash. Credit customers pays a month in arrears.
ii. Suppliers offer a month credit on purchases and are paid on time.
iii. Wages, fixed costs and variable costs are paid in the month they are incurred.
iv. The bank balance as at 1 April 2019 is expected to be £2,480.

Consider the market for gas-powered small cars. assume gas-powered small cars are a normal good. for each of the following events, identify which of the determinants of demand or supply are affected. if demand is unaffected by this event because it creates only a supply change, select the “none” option under the “demand determinant” column. similarly, if supply is unaffected by this event because it creates only a demand change, select the “none” option under the “supply determinant” column. event demand determinant supply determinant people decide to have more children. the price of electric small cars falls. the discovery of a new source of iron ore lowers steel prices. an economic recession lowers people’s wealth. a number of major car dealers decide to switch from selling gas-powered cars to selling electric cars. show the effect of the following event on the market for gas-powered small cars: people decide to have more children for each of the four independent situations, prepare the journal entries to record the exchange on the books of each company.