• JHC PLC wishes to prepare cash budget from January. Prepare a cash budget for the first six months from the following estimated revenue and expenditure: Month Total Sales (Br) Materials (Br) Overheads(Br) Wage(Br) Selling and Distribution overheads Jan 20,000 20,000 3,200 4,000 800 Feb 22,000 14,000 3,300 4,400 900 Mar 24,000 14,000 3,300 4,600 800 Apr 26,000 12,000 3,400 4,600 900 May 28,000 12,000 3,500 4,800 900 June 30,000 16,000 3,600 4,800 1,000 Cash balance on 1st January 1999 was Br. 10,000. A new machine is to be installed at Br. 30,000 on credit, to be repaid by two equal installments in March and April. Sales commission @ 5% on total sales is to be paid within the month following actual sales. Br. 10,000 being the amount of 2nd call may be received in March. Share premium amounting to Br.2, 000 is also obtainable with 2nd call. Period of credit allowed by suppliers 2 months Period of credit allowed to customers 1 month Delay in payment of overheads 1 month Delay in payment of wages 1/2 month Assume cash sales to be 50% of total sales.