ABC Ltd., has been facing cash shortage problem for many years. You have just joined the company and made the proposal to prepare cash budget for controlling of cash shortage problem. Management has given you the green signal toprepare the cash budget and made the projection for requirement of cash through commercial bankchannel in the coming period. The following information were gathered for preparing the cash budget.

1.Sales budgets

November, 2019............................... Rs.200,000

December, 2019.................................300,000

January, 2020...................................400,000

February, 2020.................................500,000

March, 2020......................................600,000

All sales are made on credit basis and customers follow the following patter to pay;

A)40 % pay in the month of sales.

B)50 % in the following month of sales.

C)10 % pay in the second month of sales.

2.Purchase budgets

3.Purchases are made equal to 60 % of the respective month sales at beginning of the month. 50% of purchase amount is paid in the month of purchases and 50% in the following month of purchases

4.Cash operating expenses per month is estimated Rs.80,000.

5.Dividend is expected to be paid Rs.100,000 in the month of January, 2020.

6.Tax is to be paid Rs.50,000 in the month of march, 2020.

7.A new plant costing Rs. 250,000 to be purchased in the month of Feb.,2020.

8.Cash on hand on 1^st January, 2020 is Rs.100,000.

9.A minimum cash balance of Rs.150,000 to be maintained from 31^st January,2020 on ward, company has made arrangement with the local bank a line of credit to meet its cash requirement and if excess cash available it would be paid to bank to pay the loan.

Required:prepare a cash budget for the month of January, February, March, 2020

Please donot copy from other website I needed unique work and please could you explain in detail (ASAP)