Caroline commenced business on 1 January 2016 trading as ‘Caroline’s kitchen Cabinets’ selling 3-K Kitchen furniture. She had opened a business bank account on 15 December 2015, paying P25 000 into it as her opening capital. On 21 December 2015, she rented premises, paying the first quarter’s rent, due on 25 December 2015, P1 200. Other expenditure in the same month was for the purchase of fixed assets for cash, P8 000, and inventory P20 000 which was bought on one month’s credit.

Caroline Estimates that her other purchases and the sales for the year to 31 December 2016 will be as follows:

3 months to	Purchases BWP	Sales BWP
March 31	12 000	15 000
June 30	18 000	24 000
September 30	21 000	30 000
December 31	15 000	36 000

-All purchases and sales will be on one month’s credit

- Other expenditure in 2016 will be as follows:

- January 5, purchase of motor van for cash P5 000, the van is to be depreciated annually at the rate of 20% on cost

- Wages of P2 000 per month paid currently

- Caroline will draw P500 per month for living expenses. She plans to sell her private car in June for P3 500, and to pay the proceeds in to the business as additional capital. A friend has also promised to lend the business P6 000 in September 2016.

- Caroline’s bank has agreed to allow overdraft facilities if they are required with interest at 10% per annum. Interest will be debited in the bank statements on the last day of each half year and will be calculated on the average overdraft, if any for the half year. For this purpose, the overdraft on the last day of the immediately preceding quarter is to be taken as the average for the half year.

Required: Prepare Caroline’s cash budget for the year to 31 December 2016.