Naaz started up a business, and pays £80,000 into her business bank account on 1st July and budgets as follows: Fittings to be purchased on 1st July for £90,000, and this will have to be paid for by the end of the month. Depreciation is £10,000 a year. Wages: £10,000 per month. Rent of warehouse will be £84,000 per annum, payable in monthly instalments at the start of each month. Other costs incurred in the running of the business (excluding purchases) will be £40,000 per month, payable in the month in which the costs are incurred. Purchases will be supplied on one month’s credit (i. e. purchases in July will have to be paid for by the end of August). Half of the sales are expected to be for cash; the remaining half on credit. Naaz is budgeting to allow two months’ credit by her credit customers (i. e. credit sales in July will not be settled until September). For the purposes of the Profit & Loss and Balance Sheet closing stock is valued at £90,000. T