SamZuu Company is location in Ghana. The forecast information for the five months ending 31 May 2013 is:

January

Ghc000 February Ghc000 March Ghc000 April

Ghc000 May

Ghc000 June

Sales 20 16 28 26 30 24

Purchases 12 16 18 14 12 15

Machinery - - 40 - - 50

Depreciation 5 4 3 2 1 1

Interest paid 4 4 3 3 5 2

Further Information:

a) On average 30% of each months sales is expected to be for cash. Further 50% will be given one months credit. The rest will be given two months credit. All money will be received when due.

b) Suppliers are to allow one months credit. November & December 2012 purchases were Ghc 20,000 and Ghc 16,000 respectively

c) Interest will be paid at the end of the month in which they are incurred and depreciation is accounted in their respective months

d) 50% of Machinery sold in the month will be received in that month and the remaining amount spread evenly over the next 11months

e) The overdraft facility 13/12/2012 was Ghc (3,400)

Required:

Prepare a detail forecast month to month cash budget for the five(5) months ending 30 May 2013