Prepare a cash budget showing cash inflows (receipts) and cash outflows (payments) for July, August and September, showing the final closing cash balance at the end of each month. Additional information:

Month	Sales in Units
July	1379
August	1399
September	1469
October	1529

(1) The opening cash balance on 1st July is 6,500.

(2) Cash is collected from customers for sales in the following manner:

Month of sale (after giving them 2% cash discount) 25%

Month following the sale 50%

Two months following sale 20%

Amount uncollectible (bad debts) 5%

There were no sales receipts prior to July.

(3) 44% of purchases are paid for in cash in the month of purchase, and the balance is paid in the following month. The purchases made in June were 2,520. (4) Labour charges of 3,500 per month are paid every month.

(5) Overheads are incurred at 1,200 per month out of which 200 per month is depreciation on machinery.

(6) The company paid 7,500 to buy a machine in September