Cash budget

Brockbank Builders Ltd is preparing a cash budget for May and June of 2022. Past records reveal that 20% of all credit sales are collected during the month of sale, 60% in the month following the sale, 10% in the second month following the sale and 10% in the third month following the sale. The company pays for 75% of purchases in the month after purchase, and the balance is paid in the month following that.

Selling expenses amount to $6600 per month plus 15% of monthly sales. Administrative expenses are estimated to be $13200 per month, which includes $4800 of depreciation expense. Finance expenses are $1200 per month. All selling and distribution, administrative, and finance and other expenses (except depreciation) are paid for when incurred.

It is planned to purchase equipment during May 2022 at a cost of $6600. A $9000 loan payable will be repaid during June 2022. The interest due at maturity will be $1650. The company's expected Cash at Bank balance at 1 May 2022 is $13500.

Estimated sales and purchases data are as follows.

Sales Purchases 2022 February $75000 $38500 March $66000 $33000 April $ 88000 $55000 May $ 60500 $ 27500 June $71500 $38500

Required

Ignoring GST, prepare a cash budget for May and June 2022, by month and in total.