Additional Information 1. Cash balance on 1st January was Kshs. 5,000. A new machinery is to be installed at Kshs. 10,000 on credit, to be repaid by two equal installments in March and April. 2. Sales commission @ 5% on total sales is to be paid within a month of following actual sales. 3. Kshs. 5,000 being the amount of 2nd call may be received in March. Share Premium amounting to Kshs. 1,000 is also obtainable with the 2nd call. 4. Period of credit allowed by suppliers 2 months. 5. Period of credit allowed to customers 1 month. 6. Delay in payment of overheads - 1 month. 7. Delay in payment of wages 1/2 month. 8. Assume cash sales to be 50% of total sales.

Prasad \& Co. Ltd. wishes to prepare cash budget from January. Prepare a cash budget for the first six months from the following estimated revenue and expenses