During the first 6 months of the business, Surya is confident of making a large sale each month to a trading business with whom he has already been negotiating. From then on, Surya will start to make sales as a result of recommendations and advertisements he plans to place in tv and radio stations. Surya invested 10,000 as capital in the business.

1. He anticipates that sales during the six months to 31 December 2022 will be made at a gross profit of 35%. He estimates they will be as follows:

Forecast sales
July	3,800
August	2,890
September	2,050
October	3,450
November	5,000
December	2,680

2. In addition to making purchases to meet sales, Surya plans to purchase, in July 2022, a stock of silk/ linen shirts for 2,680, so that he can meet any unexpected one-off orders.
3. Sales will be made on one months credit terms.
4. Purchases credit terms: 20 % cash in the same month, 30% next month and remainder in 2 months time.
5. Other expenses are as follows:

Telephone costs 420 per quarter, payable in arrears

Electricity 725 per quarter, payable in arrears

Accountants fees 250 per month, payable in the same month

Other expenses 90 per month

6. Surya plans to make drawings of 725 each month.
7. In July 2022, Suryas mother will make a loan to the business of 15,000. The loan will carry interest @ 8%, which will be payable annually in arrears, with the first interest payment being due on 30^th June, 2023. Surya plans to use 9,500 of the loan to buy a van later in the year, probably in November. Till then, delivery costs will be 120 per month for July till October.

Prepare the CASH BUDGET for Surya Trading for the six months ended 31 December, 2022.