ABC Company Ltd. has given the following particulars. You are required to prepare a cash budget for the three months ending 31^st December, 2021.

i)

Months	Sales	Materials	Wages	Overheads
August	50000	25400	9600	4800
September	52000	25000	9600	5200
October	56000	24600	10000	5600
November	60000	25000	10400	5800
December	70000	26600	11000	6000

ii)

1. Credit terms are:

Sales terms: 10% sales are on cash basis; 50% of credit sales are collected next month and the balance in the following month.

Creditors terms:

-Materials 2 months

-Wages 1/5month

-Overheads 1/2 month

iii) Cash balance on October 1 is expected to be 8,000.

iv) A machinery will be installed in August, at a cost of 1,00,000. The monthly installment of 5,000 is payable form October onwards.

v)Dividend at 10% on preference share capital of 3,00,000 will be paid on December 1.

vi)Advance to be received from sale of vehicle 20,000 in December.

vii)Income-tax (advance) to be paid in December 5,000.

viii)For simplicity, ignore any interest on cash balances.