Randy Airplanes Ltd is a privately-owned business

Randy Airplanes Ltd is a privately-owned business. It has budgeted for profits (after deducting depreciation of $41,000) of $150,000. Debtors are expected to increase by $20,000, inventory is planned to increase by $5,000 and creditors should increase by $8,000. Capital expenditure is planned of $50,000, income tax of $35,000 must be paid and loan repayments are due totaling $25,000. What is the forecast cash position of Randy’s at the end of the budget year, assuming a current bank overdraft of $15,000?

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