Draw up a cash budget for F. Jack showing the balance at the end of each month, from the following information for the six months ended 31 December 2004:

(a) Opening cash (including bank) balance on 1 July 2004 £3,600

(b) Production in units:

(c) Raw materials used in production cost £15 per unit. Of this, 90 per cent is paid in the month of production and 10 per cent in the month after production.

(d) Direct labour costs of £24 per unit are payable in the month of production.

(e) Variable expenses are £6 per unit, payable 40 per cent in the same month as production and 60 per cent in the month following production.

(f) Sales at £60 per unit:

Debtors to pay their accounts three months after that in which sales are made.
(g) Fixed expenses of £1,200 per month payable each month.
(h) Machinery costing £6,000 to be paid for in September 2004.
(i) Will receive a legacy of £7,500 in November 2004.
(j) Drawings will be £900 per month.

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2004 2005 March April May June July Aug Sep Oct Nov Dec Jan 720 810 900 960 1,050 1,110 1,140 1,020 930 780 750