Draw up a cash budget for AmBen Ltd showing the balance at the end of each month from the

following information for the six months ended $31$ December $2024$

a$.$ Opening cash balance $($including bank$)$ balance $$6,790$

b$.$ Production in units: April $2,140,$ May $2,270,$ June $3,100,$ July $3,520,$ August $3,250,$ Sep $3,670,$

Oct $280,$ Nov $640,$ Dec $4,310,$ Jan $2025,2,560,$ Feb, $2,950.$

c$.$ Raw materials used in production cost $$15$ per unit. Of this $70\%$ is paid in the month of

production and $30\%$ in the month after production.

d$.$ Direct labour costs of $$10$ per unit are payable in the month of production. Management of

AmBen ltd after negotiation with the workers' union has agreed to an increase in direct labour cost

of $15\%.$ Payment of the new wage will start from August $2024.$

e$.$ Variable expenses are $$5$ per unit, payable one$-$half in the same month as production and one$-$

half in the month following production.

f$.$ Sales at $$40$ per unit:

Mar $2,260,$ Apr $2,600,$ May $3,520,$ Jun $2,109,$ Jul $1,400,$ Aug $2,300,$ Sep $2,350,$ Oct $1,400$ Nov

$2,390$Dec$1,400$

All sales are on credit. Eighty percent of the value of the sales is received in month after sale,

$10\%$ two months after sale and $8\%$ three months after sale. The balance is written off as bad

debt.

g$.$ Fixed expenses of $$5,200$ per month payable each month.

h$.$ Machinery costing $$25,000$ to be paid for in October $2024.$ Depreciation on the new machinery

is calculated at $25\%$ on cost

i$.$ Cash from a loan secured on the land and buildings of $$120,000$ at an interest rate of $7\mathrm{.}5\%$ is

due to be received on November $2024.$

j$.$ An interim dividend to ${30}^{th}$ June will be paid in August of $$12,500$