From the following data, construct a cash budget for the six months ending 31 December 2016:

(a) Purchases and sales are expected to be as follows:

(b) The selling price of each unit is £50.

(c) The purchase price of each unit is £20, but this will rise by 20% on 1 October 2016.

(d) Purchases are paid for one month in arrears.

(e) Twenty-five per cent of sales are for cash, with each sale receiving a 4% cash discount. The remainder will delay payment by one month.

(f) Trade debtors as at 30 June 2006 amounted to £4,500.
(g) Trade creditors as at 30 June 2006 amounted to £2,800.
(h) A new van is expected to be purchased in September, which would cost £18,000.
The old van would be traded in at a value of £5,000. However, only half of the net purchase price would be paid then. The remainder would be paid in 2017.
(i) Wages and salaries amount to £3,000 per month, paid in the month incurred.
(j) Overhead expenses will be £900 per month, paid when incurred.
(k) On 1 July 2016 the bank balance was £9,000.

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Units: Purchases Sales Jul Aug Sep Oct Nov 2003 2003 2003 2003 2003 170 170 250 210 240 160 180 190 280 300 Dec 2003 250 320