From the following information which relates to Chinhamo Ltd you are required to prepare a month$-$by$-$month cash budget for the second half of $2021$ and to append such brief comments as you consider might be helpful to management.

$($a$)$The company$$s only product, a calfskin vest, sells at $$40$ and has a variable cost of $$26$ made up as follows:

Materials$$$$20$

Labour$$$$4$

Overhead$$$$2$

$($b$)$Fixed cost of $$6000$ per month are paid on the $28$th$$of each month.

$($c$)$Quantities sold$/$ to be sold on credit are:

$$May$$June$$July$$August$$Sept$$Oct$$Nov$$Dec

$10001200140016001800200022002600$

$($d$)$Production quantities:

May$$June$$July$$August$$Sept$$Oct$$Nov$$Dec

$12001400160020002400260024002200$

$($e$)$Cash sales, at a discount of $5\%$ are expected to average $100$ units a$$month$.$

$($e$)$Customers are expected to settle their accounts by the end of the second month following sale.

$($f$)$Suppliers of material paid two months after the materials in used in production.

$($g$)$Wages are paid in the same month as they are incurred.

$($h$)70\%$ of the variable overhead is paid in the month of production, the remainder in the following month.

$($i$)$Corporation Tax of $$18000$ is to be paid in October.

$($j$)$A new delivery vehicle was bought in June, the cost of which, $$8000$ is to be paid in August. The old vehicle was sold for $$600$ the buyer undertaking to pay in July.

$($k$)$The company is expected to be $$3000$ overdrawn at the bank at $30$ June $2021.$

$($l$)$The opening and closing stocks of raw materials, work in progress and finished goods are budgeted to be the same.