Iramba Sea Foods Investment is negotiating a Loan from Tanzania Investments Bank which has kindly requested the Company to prepare and submit their cash budget for the first half year.

The following information is available

i. Cash on hand and at the bank on 1st January, 2024 is expected to total TShs.1,500,000.

ii. Debtors normally pay 50% of the amount due at the end of the month following sale and the remaining 50% at the end of the second month after sale.

iii. Iramba Sea Foods Investment pays its creditors at the end of the month after purchase of goods

iv. Sales and purchases budget are as shown below.

Sales Purchases

November 2023 20,000,000 12,000,000

December 2023 22,800,000 14,000,000

January 2024 25,000,000 17,500,000

February 2024 25,000,000 20,000,000

March 2024 26,000,000 21,500,000

April 2024 28,000,000 21,500,000

May 2024 30,000,000 19,800,000

June 2024 32,000,000 22,400,000

v. Selling and administration expenses will be paid at the end of each month

vi. Iramba plans to buy a new Computer in April 2024 at a cost of TZS 4,500,000. This amount include the cost of Atlas-T Software required by Iramba. The company expects to settle this amount at the end of April.

vii. Other overhead incurred at the end of every month amount to TZS 1,000,000.

viii. Depreciation of Plant and Machinery per month is TZS 2,350,000.

Required;

You are required to preparing a monthly cash budget for the first quarter of half of 2024.