Ukridge comes to see you in April 19X3. He is full of enthusiasm for a new product that he is about to launch on to the market. Unfortunately his financial recklessness in the past has led him into being bankrupted twice, and he has only just got discharged by the court from his second bankruptcy.

‘Look here laddie,’ he says, ‘with my new idea I’ll be a wealthy man before Christmas.’

‘Calm down,’ you say, ‘and tell me all about it.’

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Ukridge's plans as far as cash is concerned for the next six months are: (a) Present cash balance (including bank) 5. (b) Timely legacy under a will being received on 1 May 19X3, 5,000. This will be paid into the business bank account by Ukridge. (c) Receipts from debtors will be: May 400, June 4,000, July 8,000, August 12,000, September 9,000, October 5,000. (d) Payments will be: May 100, June 5,000, July 11,000, August 20,000, September 12,000, October 7,000. You are required: (a) To draw up a cash budget, showing the balances each month, for the six months to 31 October 19X3. (b) The only person Ukridge could borrow money from would charge interest at the rate of 100 per cent per annum. This is not excessive considering Ukridge's past record. Advise Ukridge.