1.

Veronique is bored with her work in a large factory. As a creative person, she would like to leave and start up a flower shop. Veronique has asked about micro-finance and prepared a cash flow forecast. An extract is shown in the below table. Veronique has also carried out some market research and found out that the demand for flowers is likely to be high during festivals. She thinks she has the right characteristics to be a successful entrepreneur.

Extract from the cash flow forecast for Veronique’s flower shop for the first 3 months ($)
	Month 1	Month 2	Month 3
Cash in	500	1 200	2 000
Cash out	1 500	1 400	1 200
Net cash flow	(1 000)	(200)	800
Opening balance	0	(1 000)	(1 200)
Closing balance	(1 000)	(1 200)	(400)