Que.1. Raysut Company has provided the following information for the months of September October, November and December 2021

Month	Sales (OMR)	Wages (OMR)	Other expenses (OMR)	Purchases (OMR)
September October November December	2800 1800 1200 600	100 120 100 110	500 120 60 100	1100 1500 850 800

Additional information:

• Cash balance on 1/10/2021 is OMR 910
• Sales -50% is realized in the month of sales and the balance in the next month.
• Wages are paid in the next month
• Other expenses are payable in the same month
• Machinery sold for OMR 200 in December 2021 and cash to be received after two months.
• OMR 250 is payable in November 2021 for the motor van purchased in September 2021
• Rent OMR 2,300 is payable in December 2021

a. You are required to prepare the cash budget for the company for the period October to December 2021

b. Will there be a necessity for Raysut Company to avail bank overdraft? If yes, suggest the company as to how much minimum amount has to be taken as loan or overdraft and in which month it will be required.

Cash budget for the period -------------------------------------