=+There is a gross profit margin of 40 per cent on sales. All costs (materials, labour and other) are paid for on receipt. Only 20 per cent of customer sales are expected to be paid for in the month of delivery. A further 70 per cent will be paid after one month and the remainder after two months. Labour and other costs amount to 10 per cent of sales. Debtor levels at the end of September are £400,000 and the investment in stock is £350,000.

Required a

Prepare a cash budget for October, November and December, and state if the firm will be able to purchase the new equipment.