Clariton Antiques Ltd needs to produce a cash budget for the Banks in order to ensure that there is enough cash within the business to achieve the operational levels set by the functional budgets. The following sales forecast have been produced for the next six months.

2016/2017
November	150,000
December	150,000
January	300,000
February	450,000
March	600,000
April	300,000
May	300,000
June	75,000

July 150,000

Collection estimates obtained from the credit and collection department are as follows:

Collected within the month of sale, 5 percent

Collected the month following the sale, 80 percent

Collected the second month following the sale, 15 percent.

Total payments for six months to June 2017 is provided as follows;

January	807,250
February	137,250
March	119,750
April	437,250
May	227,250
June	219,750

The cash on hand on 1st January 2017 will amount to 110,000

Required: Prepare an analyses of the cash budget for Clariton Antiques and advice on decisions that can be taken to improve their financial Position.