1. On 31 March 2016 the bank account in the general ledger reflected a debit balance of $40 000. 2. Sales figures before taking any discounts in respect of cash or credit sales are:

March

April

May

June Cash Sales 60 000 68 000 64 000 70 000 Credit Sales 42 000 36 000 32 000 40 000

1. The following discounts are given as incentives to customers:

Cash discount of 12%;

settlement discount of 5% on credit sales if accounts are settle 30 days after the sales.

2. Collections from debtors are expected as follows: 50% 30 days after the sale 30% 60 days after the sale 18% 90 days after the sale 2% written off after 90 days

3. The production records for finished goods reveal the following production costs:Actual BudgetedMarch R AprilMayJuneRRR Direct material 40 00032 00028 00030,000 Direct Labour 32 000 24 00020 00016 000 Overheads 16 00012 00010 0008 000

4.50% of the material purchases are on credit. Creditors are usually paid as follows:

70% within the same month of the purchase 30% 30 days after the purchase.

5.Payment of overhead costs and selling and administrative costs are delayed by one month.Selling and administrative costs are as follows: March (actual)$13 000 April (expected)$14 000 May (expected)$14 400 June (expected)$16 000

6.The proprietor is expected to increase her capital contribution by $100 000 in June 2016.

7.Employees involved in the production of finished goods (direct labor) are paid wages. Sincewages are paid on specific days, only 75% of a month's budgeted wages are paid in that month. The rest are paid in the following month.

Required

Prepare the cash budget for the period 01 April to 30 June 2016.