The following information relates to the business of Marcel:

It is expected that:
■ The cash balance at 1 August will be £2,570
■ 10% of sales will be cash sales
■ 10% of purchases will be for cash
■ Debtors will pay two months after sale
■ Creditors will be paid one month after purchase
■ Wages, rent and other expenses will be paid as incurred.

Required

Prepare a cash budget for each of the three months ending 31 October.

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Sales Purchases Wages Rent Other expenses Cash purchase of delivery van Depreciation of vehicles June July £. £ 34,000 36,000 15,000 16,000 5,600 5,700 2,000 2,000 4,800 4,900 300 300 August September £ £ 35,000 34,000 15,000 15,000 5,600 5,800 2,000 2,000 4,300 4,000 17,000 600 600 October £ 37,000 16,000 5,600 2,000 5,000 600