=+7 (Examination level) You have been asked to prepare a cash budget for Whitborrow ple for the next three months, October, November and December. The managers are concerned that they may not have sufficient cash to pay for a £150,000 investment in equipment in December. The overdraft has reached its limit of £70,000 at the present time - the end of September. Sales during September were a total of £400,000, of which £55,000 was received in cash, £165,000 is expected to be paid in October, with the remainder likely to flow in during November. Sales for the next three months are expected to be:

Total sales Cash sales Credit sales October 450,000 90,000 360,000 November 550,000 110,000 440,000 December 700,000 140,000 560,000