Greenlight Ltd, which produced bags on a commercial basis, is preparing its cash budget for the next year. January February March R R R Selling expenses 40 000 60 000 50 000 100 000 125 000 110 000 45 000 29 000 Admin expenses Equipment purchased Rent income Taxes payable Credit Sales 50 000 50 000 55 000 110 000 217 500 232 500 240 000 65 250 69 750 72 000 Cash Sales Purchase of inventory 155 000 166 000 170 000 ADDITIONAL INFORMATION Taxes is paid in the month incurred. Admin expenses include depreciation on equipment amounting to R5 000 per month and are paid for in the month incurred Selling expenses include depreciation of R10 000 in respect of motor vehicles and payments are made monthly Purchases of inventory are paid 65% in the month of the purchase and the balance is paid in the following month. Collection from debtors are done one month later. In December sales amounted to R210 000 and purchases was R140 000. The bank balance on the 31 December is R100 500 (favourable). Rent income is received monthly Equipment was purchased in the months of January and February and paid for in cash. 3 REQUIRED Prepare the cash budget for each of the first three months of the year