Vierra Popova Ltd now wishes to prepare its cash budget for the second six months of the

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Vierra Popova Ltd now wishes to prepare its cash budget for the second six months of the year. The budgeted income statements for each month of the second half of the year are as follows:image text in transcribed

The business will continue to allow all of its customers one month’s credit.
It plans to increase inventories from the 30 June level by £1,000 during each month until, and including, September. During the following three months, inventories levels will be decreased by £1,000 each month.
Inventories purchases, which had been made on one month’s credit until the June payment, will, starting with the purchases made in June, be made on two months’ credit.
Salaries, wages and ‘other overheads’ will continue to be paid in the month concerned.
Electricity is paid quarterly in arrears in September and December.
At the end of December, the business intends to pay off part of some borrowings. This payment is to be such that it will leave the business with a cash balance of £5,000 with which to start next year.
Prepare the cash budget for the six months ending in December.

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