Jireh Fabrication Company is in the process of preparing the cash budget for the last four months of 2015 that is September to December. The following information has been made available.

1. Projected sales

                             Sept.             Oct.                  Nov.                Dec.

Quantity (units)   60000           65000                65000             70000

 

2.  Selling price is GH¢10 per unit but expected to drop by 5% from 1^st November.
3. Payment for goods sold is as follows; 20% in the month of sales, 60% the following month after sales and the balance in the second month after sales. Bad debt is estimated at 2% of sales value.
4. Purchases of goods at GH¢6 per unit are as follows: September 70000 units, October 70000units, November 72000 units and December 65000 units.
5. Goods purchased are paid one month in arrears.
6. Monthly expenses estimated at 12% on sales revenue are paid in the month of incurrence
7. The company plans to buy a delivery van at GH¢270000, 40% of the cost to be paid in October and the balance in January 2015.
8. The Director withdraws GH¢20000 monthly for personal expenses.
9. Extracts from August figures are as follows:

1. Debtors GH¢460000 out of which GH¢100000 is part of July sales before bad debt
2. Creditors for goods GH¢200000
3. Cash GH¢70000

Required:

Prepare Monthly cash budget for the four months ending December 2015