Glorious Nature Company, a local business with twenty branches in the country has been affected

by numerous emerging competitors and is considering shutting down the business for good if the

cash flow for the next two months are not showing good prospects.

The CEO is asking for a cash budget for May and June $2023$ to assist the company's management

to consider whether to shut down the business for good. Past records reveal that $20\%$ of all credit

sales are collected during the month of sale, $60\%$ in the month following the sale, $10\%$ in the

second month following the sale and $10\%$ in the third month following the sale.

The company pays for $75\%$ of purchases in the month after purchase, and the balance is paid in

the month following that.

Selling expenses amount to $$6,600$ per month plus $15\%$ of monthly sales. Administrative expenses

are estimated to be at $$13,100$ per month, which includes $$3,800$ of depreciation expense. Finance

expenses are $$1,750$ per month. All selling and distribution, administrative, and finance and other

expenses are paid for when incurred.

The company is also planning to carry out its first retrenchment exercise during May $2023$ at a

cost of $$20,600.$ A second phase of retrenchment which will cost the company $$39,000$ will be

paid during June $2023.$ The interest due for bank loans is $$1,650$ and paid at the end of every

quarter of the year. The company's expected Cash at Bank balance on $1$ May $2023$ is $$9,200.$

Details of Sales and Purchases as follows:

Required:

a$)$ The CEO needs the Cash Budget for May and June $2023$ urgently to make various

important decisions.

Prepare a Cash Budget for May and June $2023.$

You need not calculate the total for the two months of May and June $2023.$