Self-test Motorman Ltd supplies car parts to garages. Estimated figures for August to November are as follows:

Sales Wages Expenses August 190,000 15,000 16,800 September 225,000 16,000 18,750 October 250,000 18,000 11,400 November 220,000 18,000 20,150 Seventy per cent of sales are on credit and all debtors pay in the following month.

The remaining sales are for cash. Goods are sold at cost, plus a mark-up of 25 per cent. Goods for resale are purchased one month before the month of sale, at the forecast level but all the manufacturers allow the firm two months’ credit. All other costs are paid in the month in which they are incurred. Expenses include a monthly charge for depreciation of £5,000.

The firm plans to buy a new delivery van at the end of November for £25,000 cash and expects to pay tax amounting to £38,500 in September. The forecast cash balance at the end of August is £25,000.

You are required to prepare a cash budget for September, October and November.