A company has produced a profit forecast, by month for the period May to September: 000 May June July Aug Sept Sales 72 80 120 140 112 Production cost of sales: Raw materials used 27 28 36 42 33 Factory wages 26 26 30 33 27 Production overheads 21 21 22 23 22 Cost of production 75 88 98 82 Opening stock of finished goods 49 58 67 67 87 Closing stock of finished goods 58 67 67 67 65 66 88 98 84 Gross profit 7 14 32 42 28 74 65 7 12 12 13 13 13 Administration and selling overheads Net profit/(loss) (5) 2 10 20 15 Notes: (1) 10% of sales are for cash. Credit sales are settled in the month after sale. (2) Suppliers of raw materials are paid one month after delivery. (3) Stock of raw materials (end of month): April 14,000 May 17.000 June 20,000 21,000 August 21,000 September 20,000 (4) Factory wages are paid for each month on the last day of the month. (5) Monthly production overheads include depreciation of 6,000 and rent of 3,000. Rent is paid quarterly in advance on the last day of March, June, September and December. The remaining production overheads are paid in the month following that incurred as are all administration and selling overheads. (6) Capital expenditure of 35,000 will be incurred in August. This will not affect the monthly depreciation charge. (7) A bank overdraft balance of 3,000 is expected on 1 June. (8) The profit forecast does not include any bank interest and no allowance is to be made for this in any of the budgets at this stage. July REQUIRED (a) Prepare a cash budget for each of the months June, July and August