Detail of product A (to be launched in next year)

	January (Unit)	February (Unit)	March (Unit)	April (Unit)
Sales	1,000	1,200	1,100	1,200
Closing stocks needed	200	300	200	300

Notes: Unit selling price = RM20

Purchase price = RM12

All sales in credit in which 40% to be received in 1 months 55% in 2 months time and the rest to be treated as bad debts.

About 60% of creditors to be settled in 1 month time which entitled for 5% cash discount and the rest in two months time. (Purchases made in the month of production)

Monthly overhead estimated at RM500 and payable one month in arrears.

Monthly salary estimated at RM2000 and payable in the month of occurred.

Machinery costing RM10,000 to be acquired in January and payment made immediately. Companys policy is to provide depreciation at 20% on cost.

A monthly loan repayment of $500 will be paid in which RM120 is interest.

Opening bank balance at RM13,000.

Required:

Prepare a cash flow budget for the four months ending April.