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Mr Jackson decides to start a business in January 2019 with a cash of Rs300,000. He will buy second hand machinery at a cost of Rs150,000 out of the Rs300,000. The machinery has an estimated useful life of five years and no residual value. The variable cost of production has been estimated as follows: Rs 70 Direct materials Direct labour Variable production overhead 60 20 150 Additional information: (a) 75% of the current month sales will be produced in the same month and 25% in the previous month. (b) Estimated sales are: Month Units Rs January February 3,200 800,000 March 3,600 900,000 April 4,000 1,000,000 May 4,000 1,000,000 ann (c) 60% of materials required for each month are to be purchased in the previous month and 40% in the same month. Payments are one month after purchase. (d) Labour costs will be paid in the month in which they are incurred. (e) Variable production overhead will be paid in the month following production. (f) Fixed overhead is Rs300,000 per annum and are incurred uniformly. (g) It is estimated that 40% of each month sales will be received in the same month and the balance in the next month. REQUIRED: (a) Prepare a cash budget for the period of January to March 2019. (22 marks)