Members would like to have new equipment installed at a cost of R16 000. This equipment is to enable the club to host a competition on the 20^th of September. The equipment would be installed one week before the competition and the supplier would require payment on the 1^st of October.

The club currently has 400 members. Forty-five percent of such are corporate members who pay R250 per month. The remaining private members pay R90 per month. Members receive a 5% discount if they pay annually instead of monthly. If they pay annually they will pay on the 1^st January each year. Twenty-five percent of all members have taken this option. (25% of corporate members and 25% of private members.)

The club also sells running vests and shorts to its members.

Expected sales are as follows:

	August	September	October	November
Vests	20 units	50 units	30 units	40 units
Shorts	25 units	45 units	20 units	50 units

Each vest sells for R95 and each pair of shorts for R60. Members pay cash for the clothing on the day of purchase. These items are branded with the clubs logo and are very popular amongst its members.

Due to the time it takes for new vests and shorts to be branded with the clubs logo the club keeps stock of these items sufficient to meet the demand in the following month as well as 50% of the month thereafter. FIT pays R55 per Vest and R40 per pair of shorts. The supplier requires payment for the clothing during the month that the sale to FIT was made.

Salary and Wage costs as well as cleaning are paid during the month in which they are incurred. The supplier of consumables only requires payment in the month following the month in which they were incurred.

An advertising campaign has been planned for September, but a club member has agreed to pay all associated costs as he is able to promote his own business during the same campaign.

Mr Zibani has arranged for the purchase, on credit, of a quad bike by the club to facilitate the transportation of any club member back to the club who may become too tired to continue running during any of the runs organised by the club. This bike cost R45 000 and is due to be delivered on the 1^st of September. The first instalment of R4 000 is due on 31^st September 2022. Interest is charged at 9% per annum. The quad bike is expected to have a useful life of three years.

The club receives interest on their bank account monthly, at a rate of 6% pa, calculated on the opening balance for that month.

FIT does not currently have an overdraft facility.

The positive bank balance of FIT is R4 600 on 1 September 2022.

You have found an expenditure budget prepared by Mr Zibani prior to his illness.

	August R	September R
Consumables	5 840	4 580
Cleaning	9 800	9 500
Salaries and wages	21 000	23 000
Rental	5 000	5 000
Advertising Campaign		8 500
Interest on the quad bike loan		3 375
Depreciation on equipment (excluding the quad bike)	6 000	6 000

1. Prepare a cash budget for the month of September 2022. Where a cost or income does not result in a cash flow please show it as zero.