Macron Publisher Ltd own $14$ shops selling books. At the beginning of January, the business has

overdraft of $40,000$ and bank had asked for this to be eliminated by end of July. As a result, the

directors have recently decided to review their plans for the next $6$ months. The following plans are

prepared.

Jan

$(000)$

Feb

$(000)$

Mar

$(000)$

Apr

$(000)$

May

$(000)$

June

$(000)$

July

$(000)$

Sales Revenue $215270340280200320210$

Purchase $170280175104897368$

Administration

Expenses

$55606848575449$

Selling Expenses $33382826211918$

Taxation Payment $125222$

Finance Payment $10101010101010$

Shop

Refurbishment

$151016$

Notes:

$1.$ Inventory level at $1$st Jan was $200,000.$ Macron prefer to maintain minimum inventory level

$70,000$ of goods over the period to $31$st July.

$2.$ Suppliers allow one month credit. The first three months$$ purchase are subject to a contractual

agreement which must be honoured.

$3.$ The gross profit margin is $40\%.$

$4.$ Cash sales are received in the month of sale. However, $50\%$ of the customers pays with the

credit card. The credit card handling company charge $4\%$ to the macron. This charge is an

additional charge to the selling expenses mentioned above. The credit card handling company

pays the Macron in the month of sales.

$5.$ The Macron has a business loan which its pays by instalment of $10,000.$ The interest elements

represent $25\%$ of each instalment.

$6.$ Administration expenses are paid when they occurred. The item includes depreciation charge

of $25,000$ each month.

$7.$ Selling expenses are payable in the following month.

Required:

A$)$ Prepare a cash budget for the Macron Limited for the $6$ months from February to July