Green has been in business in several years and has provided the following budgeted information.

2020 November	Revenue 12 000	Purchases 7 000	Depreciation 60	Office expenses 3 150
December	13 000	8 500	60	3 100
2021 January	15 000	9 000	60	3 100
February	13 000	7 500	60	3 400
March	14 000	9 500	75	3 550
April	16 000	6 500	75	3 350

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.
7. 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

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

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