Green has been in business in several year

2020	revenue	purchases	dep	office expenses
nov	12000	7000	60	3150
dec	13000	8500	60	3100
2021
jan	15000	9000	60	3100
feb	13000	7500	60	3400
mar	14000	9500	75	3550
april	16000	6500	75	3350

Additional information

1. 10% of all revenue are cash sales

2. 50% of credit customers pay in the month following sale and receive a 4% cash discount. Remaining trade receivables pay in the month following sale.

3. All purchases are on credit and are paid for in the month following purchase.

4. Annual insurance of $4 500 is paid in two equal instalments on 1 February and 1 August each year.

5. Dividend amounting to $1 550 is expected to be paid on 25 January 2021.

6. Office expenses are paid one month in arrears.

Green contracted a 10% bank loan of $5000, 1 March 2021 to buy some non current assets.

8. The balance at bank is expected to be $652 overdrawn. REQUIRED

(a) Prepare a cash budget for each of the four months ending 30 April 2021. (20 marks)

(b) What is zero based budgeting and how does it differ from traditional forms of budgeting?