Randy Enterprises has the following information on $1$st June, when it expects to start its

business.

Budgeted balance sheet as at $1\%$ June

Cash at bank$=$ $$60\mathrm{.}000$

Financed by

Share capital: $60,000,$ $$1$ Common shares$=$ $$60,000$

During the month of June, the company intends to make payments for the following items; Building $$40,000,$ Equipment $$10,000,$ motor vehicle $$6,000.$ The business will also purchase initial trading stock costing $$22,000$ on credit.

The enterprise has produced the following estimates:

$1)$ Sales for June are expected to be $$8,000$ and will increase at the rate of $$3,000$ per month until September.

In October, sales are expected to rise to $$22,000$ and in subsequent months sales will be maintained at this figure

$2)$ The gross profit percentage on goods sold will be $25\%.$

$3)$ There is a risk that supplies of trading stock may be interrupted towards the end of the accounting year. The business therefore intends to build up its initial level of stock of $$22,000$ by purchasing $$1,000$ of stock each month in addition to the monthly purchases necessary to satisfy monthly sales. All purchases of stock including the initial stock will be paid for after one month.

Sales will be divided equally between cash and credit sales. Credit customers are expected to pay $2$ months after the sale is agreed on$.$

$5)$ Wages and salaries are expected to be $$900$ per month. Other overheads are expected to be $$500$ per month for the first $4$ months and $$650$ thereafter. Both types of expense will be payable when incurred.

$6)8\%$ of sales will be generated by sales people who will be paid a $5\%$ commission on sales. The commission is payable one month after the sale is agreed.

$7)$ The business intends to purchase further equipment in November for $ $7,000$ cash.

$8)$ Depreciation is to be provided at the rate of S$\%$ per annum on the building and $20\%$ per annum on equipment. Depreciation is not included in the overheads mentioned in $(5)$ above.

Required:

Prepare a cash budget for Randy Enterprises for $6$ months period to $30$th November.