（a）Explain two cash inflows and two cash outflows that are likely to be included in CR＇s cash flow forecast for its first year of trading． Cash inflow 1： . . . Cash inflow 2： . . . Cash outflow 1： . . . Cash outflow 2： . . .

Award 1 mark for each cash inflow/outflow (max 2 inflows/2 max outflows). Award a maximum of 1 additional mark for each cash inflow/outflow which must be applied to this context.

Relevant cash inflows:
- Cash sales - from the sale of rugs
- Credit sales - if trade credit is given to wholesalers
- Money borrowed from external source - as Charly is to take out a bank loan for \(\$ 20000\)
- Money invested by owner - \(\$ 10000\) will be put in by Charly to start up the business

Relevant cash outflows:
- Wages - to the 4 or 8 employees
- Rent - of the new factory
- Electricity/power - \(\$ 200\) or \(\$ 400\) depending on the location chosen
- Interest payments - to the bank for an overdraft if taken out (or for the bank loan of £20 000)
- Raw materials

For example: Cash from the sale of products (1) in this case it will be from the sale of rugs (app).

Application might include: rugs; bank loan for \(\$ 20000\); sell through wholesalers / sell online / sell through own shops; own investment of \$10 000; luxury product; forecast demand is 20 rugs per week; interest rates increase from \(4 \%\) to \(7 \%\); figures from Appendix 2 ; new factory.